A Thanksgiving Lesson in Margin Strategy
Thanksgiving is almost here, and grocery carts everywhere look the same, cranberry sauce, mashed potatoes, pumpkin pie, and of course… the turkey.
This time of year, big-box grocers sell turkeys by the truckload, often at or below cost. It’s a volume play designed to get shoppers through the door. For small independent shops, though? Competing on price is a losing battle.
I know from experience. Years ago, I helped run a small butcher shop on Chicago’s north side. When November hit, the major chains would advertise whole turkeys for pennies per pound. If we tried to match those prices, we’d have gone under.
So we took a different approach.
When You Stop Competing on Price, Everything Changes
Instead of cheap turkeys, we brought in:
Free-range birds
Heritage breeds
Locally raised options
We charged two or three times more than the chains. And guess what?
We sold fewer turkeys but our margins skyrocketed. Customers who cared about quality, sourcing, and flavor were happy to pay the premium. We weren’t “just another meat counter” anymore. We became the place for the best Thanksgiving turkey in the neighborhood.
Less volume. Higher margins. Loyal customers. A niche well served.
The Same Playbook Works in Staffing
Today, the highest-volume staffing categories—light industrial, warehousing, general labor, admin—are dominated by national firms. They compete on price just like the grocery giants, often driving margins into the ground to win or keep accounts.
For independent staffing firms, trying to beat them at that game rarely ends well.
But there’s a better path: specialization.
Where Specialists Thrive
Independent firms that carve out niches consistently earn higher margins, especially in areas such as:
Healthcare (professional and specialty)
IT & engineering
Accounting & finance
Skilled trades
Emerging and niche verticals (aerospace, life sciences, renewable energy, logistics tech, etc.)
Mid-market clients too small for the national players’ attention
Why do specialists win?
- The work requires real recruiting not just posting jobs and hoping someone bites.
- The talent is harder to find: Scarcity increases value.
- Clients need expertise, not just bodies: When you speak their language and solve their problems, price becomes secondary. Even firms serving lower-skilled categories can lift margins by going niche, like focusing on one industry, one region, or one workflow where they deliver unmatched consistency and service.
The Right Funding Partner Supercharges a Niche Strategy
At Madison Resources, we’re built differently from generic lenders.
We work exclusively with staffing companies. No other industries. No divided focus.
That means:
Higher advance rates to take on high-quality niche work
Real industry insight when you explore new verticals
A true partnership, not transactional banking
When your cash flow is stable and your partner understands your business, you can invest in specialization. Better recruiters, targeted marketing, deeper expertise, without chasing low-margin volume to survive.
The Playbook for High-Margin Growth
Here’s the formula successful niche firms follow:
Choose a niche where your expertise meets real market demand.
Deliver standout quality that clients can’t get from high-volume competitors.
Partner with specialists who understand staffing and support your growth.
Follow that model, and you won’t just compete with the nationals—you’ll outperform them.
A Thanksgiving Worth Giving Thanks For
This season, remember the turkey lesson:
You don’t win by being the cheapest. You win by being the best in your lane.
Here’s to building a staffing business that earns loyalty, margin, and growth all year long.
Ready to start your funding journey? Partner with Madison Resources today [apply here]
Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.
