Competition in Tough Times
Competition in Tough Times
The obvious answer is price. Sure, the lowest price makes a difference, but don't believe for a second that it's the only variable out there that will make customers want to to business with you. Furthermore, by definition, having the lowest price won't build customer loyalty. A customer that came to you (or Wal-Mart or Costco) for the lowest price will just as readily go down the street for a lower one, so don't get caught up in that game.
First, you have to assess the price you charge versus the cost you pay. Recessions are always a great time to shop your business around to make sure you're paying the lowest price to your vendors that you can. Maybe you can get a better price from a new vendor, or a vendor that's trying to break into the market. This is an easy way to reduce your costs, meaning you can reduce your price without hurting your margins.
Second, take a reality check and decide what fripperies and luxuries you and your staff can do without. This is another easy way to reduce your overhead, allowing you to run your business successfully on less revenue. However, make sure you aren't cutting revenue producing line items!
Third, make the most of your staff, your location, and your existing customer base. You opened your store because you love that line of business, and you've come to be an expert in your market. Make sure your customers know this. Have free open houses and workshops where you can show customers a good time, giving them a tangible benefit. At the same time, you're reinforcing to them that you're not just an order taker, but you're a valuable resource and a subject matter expert. The next time they think about the product or service that you offer, chances are that they'll naturally think of you too! How powerful is that?
Finally, now that you're the neighborhood expert, make sure that you have the goods and services on hand to satisfy your customers' needs WHEN THEY COME TO YOU, rather than when it's convenient for you. This is the key to customer service. Sure, you need to be nice to them, but understanding their needs, sympathizing with the customer, and always being able to help them and satisfy their wants will build customer loyalty that a slightly better price at a cold, faceless superstore won't overcome.
Take the time to search out small details that will build this value for your customers and you can go a long way toward recession proofing your business.
Competition in Tough Times - To learn more about this author, visit Will Atkinson's Website.
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So, everyone reads the news, and everyone knows it's tough out there. How can a small retailer compete with Wal-Mart, Lowe's, etc. when times are so tough for everyone?
The obvious answer is price. Sure, the lowest price makes a difference, but don't believe for a second that it's the only variable out there that will make customers want to to business with you. Furthermore, by definition, having the lowest price won't build customer loyalty. A customer that came to you (or Wal-Mart or Costco) for the lowest price will just as readily go down the street for a lower one, so don't get caught up in that game.
First, you have to assess the price you charge versus the cost you pay. Recessions are always a great time to shop your business around to make sure you're paying the lowest price to your vendors that you can. Maybe you can get a better price from a new vendor, or a vendor that's trying to break into the market. This is an easy way to reduce your costs, meaning you can reduce your price without hurting your margins.
Second, take a reality check and decide what fripperies and luxuries you and your staff can do without. This is another easy way to reduce your overhead, allowing you to run your business successfully on less revenue. However, make sure you aren't cutting revenue producing line items!
Third, make the most of your staff, your location, and your existing customer base. You opened your store because you love that line of business, and you've come to be an expert in your market. Make sure your customers know this. Have free open houses and workshops where you can show customers a good time, giving them a tangible benefit. At the same time, you're reinforcing to them that you're not just an order taker, but you're a valuable resource and a subject matter expert. The next time they think about the product or service that you offer, chances are that they'll naturally think of you too! How powerful is that?
Finally, now that you're the neighborhood expert, make sure that you have the goods and services on hand to satisfy your customers' needs WHEN THEY COME TO YOU, rather than when it's convenient for you. This is the key to customer service. Sure, you need to be nice to them, but understanding their needs, sympathizing with the customer, and always being able to help them and satisfy their wants will build customer loyalty that a slightly better price at a cold, faceless superstore won't overcome.
Take the time to search out small details that will build this value for your customers and you can go a long way toward recession proofing your business.
Competition in Tough Times - To learn more about this author, visit Will Atkinson's Website.
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