"My business was going great until I got a similar one in the block opposite and are selling cheaper. My clients are going, I'm desperate, what I can do?"
This is one of the most common support requests I get from many entrepreneurs who suddenly see their business affected by competition . This is more common than you think and now I will tell you to do and how to get your business sell more than your competitors .
1. Do not panic. The first thing to be clear when you face a situation how are you, is that you remain calm. Many entrepreneurs have a tendency to react to its competitors and begin to lower prices or invest disproportionately large amounts on advertising that may eventually make the problem worse. My advice is to plan a strategy so thoughtful to come out victorious.
2. Competition accepts as natural. You must understand and accept that competition is normal. Especially if things are going great. For some reason, many come to this blog asking what are the most profitable? And that's because they want to know what is working to invest, right there! So do not fight against a system which is totally natural that competition and want to imitate what you do, especially if you are doing well.
3. Do not lower your prices lightly. Do not be tempted to compete by lowering prices . This is probably the first temptation to which we fall when we see someone starts to "steal" our customers. However, this medicine could be worse than the disease if we do as part of a strategy. There will be an appropriate time to level your prices but you should expect to perform other actions previously.
4. Reduce your costs. That if it is a first important step should be executed immediately. To compete, it is important to handle the increased affordability before the best prices . Evaluate your expenses, seeking better benefits with your suppliers and applies all possible actions to save on your business . This will ease slightly the burden and leave you while you develop other economic margin stock.
5. Looking for ideas for innovations. There are several ways to compete and one of them is innovation. Innovation comes from the word "innovare" that has to do with learning, to improve, to produce something "new" in your business environment . It is therefore desirable to sit as soon as possible with your team and brainstorm ideas for alternatives. For example, if you own a car wash and offer traditional services, innovate mean putting a TV room for the convenience of your customers and offer them coffee and newspapers at no additional cost while their cars are shiny.
6. Improve your current products and services. Whatever your business , another way to compete is to improve what you do. The Japanese use a term for continuous improvement and Kaizen. It means that everything you do can be improved. If you find that you can thoroughly evaluated to streamline all your processes, making them faster and less expensive. Ask yourself what I can improve today?.
7. Give your guests some "Special Offers." Customers love this phrase. All as consumers are attracted by the offers as they convey the idea that I will get more for less. So before you sacrifice your prices, prepare a strategy where you can offer any additional benefit to those who consume more in your business. For example, if you have an inn or sale of food, you could offer a free dessert on Friday, or a complimentary beverage consumption in groups of 5 or more people. Here it will be very important to be creative and make your numbers for your bids represent the desired benefit.
8. Promote your competitive advantage. The Mr. Phillip Kotler says, " If you have an advantage to compete, not compete . " And, make sure you have something you apart from your competition and make it an advantage over them. You can be the quality of your product, it may be the speed of your service, may be the way you do extraordinary things. What is the best you have in front of your competition? Define what is your competitive advantage and do promotion. Prints a banner advertising your great "Texas delicious potatoes" or your "shine super cars." And become noticed!
9. Provides customer service out of this world. Customers are everything . Without customers, no business. You must ensure that your staff provide the best care possible. If you do not, your competition if you will, so it is best to take the initiative. Many customers do not buy for the price but the service we provide. So your service must be exceptional and should also consider added value as part of it.
10. Research your competition. Another tip highly recommended as part of your strategy is to investigate which is what your client likes them. How? Very simple. Ask a trusted friend or a distant uncle who will serve as a "mystery shopper". The mission will go to your local competition like a client and collect all possible information, and serve them, to manage price, presentation and local staff, speed of service and general aspects that attract attention. This will help you know what you can do better.
As a final comment, many entrepreneurs are frustrated too especially when the competition is " unfair "if we can call you in some way. And it is hardly going to be able to escape this type of negative actions that affect our business . The board then it would fail to see what they do and focus on what we are and can do better. That is called leadership. Do not fall into the trap of neglecting your customers and your own business by being aware of your competitors.
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