37 ways to beat your competitors
You don't have to be cheaper to win customers.
Time for a hard truth: you need to be better than each of your
competitors in at least three ways if you want to survive. Yup,
even if your competition is Tesco, Virgin and Coca Cola, you've got
to find a way to do the dastardly devils a disservice. And now for
the amazingly good news: you're a small business. Which means
you're adaptable, you're already better than big brands in dozens
of ways, and you've got more punches to pack than Muhammad Ali
circa 1974.
But let's get something straight right now: being cheaper than a
competitor is not your only weapon. All too often, we see business
owners at their absolute wits' end because a rival is undercutting
them on price, and they can't keep up. Trying to compete on cost is
a race to the bottom - you squeeze your margins so paper-thin
you're left with nothing. If you can compete on price, brilliant.
If you can't, get on top with any combination of these babies:
Your product
1. Better
quality/longer-lasting
A great one to fight off the price wars, because it makes a higher
price justified. Plus, your smallness means you can put in that
extra bit of TLC that really makes a better-quality product
shine.
2. Rarer
Sick of seeing the same mass-marketed products everywhere you go?
So are we. Give the Ikea effect the cold shoulder by offering
something your customers can't buy anywhere else.
3. Easier to use
Just keep it simple, a'ight? If a customer can figure out how to
use your super-hydro-manu-sizer-gizmo in two seconds rather than
two hours, you've got the edge.
4. Safer to use
This is a particularly strong one if your customers are likely to
have kids - or if they are kids. It might take a bit of user
testing, and it's worth getting an accreditation, but believe us,
it'll work. No one wants to end up decapitated by the less-safe tin
opener on the supermarket shelves to save a few pennies.
5. More efficient
Does your product get more done than its rivals? Is it quicker?
Easier to set up and dissemble? Bonanza. Speed, these days, is ever
more of the essence - and it's an incredibly powerful sales
tool.
6. More compact
Never underestimate the magic of the Maglite effect. The maker of this mini-torch
made their millions simply by shrinking the humble torch. Make it
pocket-size, easier to carry and transport, or just all cute and
diddy, and you're onto a winner.
7. Waterproof
Apply some common sense here: this will obviously depend on what
your product's used for.
8. More retro
Remember when Wispa made that massive comeback? It played on the
retro effect. Old is the new, er, new. If your target customers are
under 30, over 50, or trendy, they'll appreciate the novelty of
retro.
9. More modern
Of course, that leaves the 31 - 49-year-old bracket wide open.
Either them, or anyone remotely interested in technology,
cutting-edge design, or the like.
10. Design that is more
beautiful/quirky/fun/edgy/stylish/simple/patterned/non-patterned/etc
We'll give our backslash key a break - you get the idea. Something
as seemingly superficial as appearance can dramatically alter a
customer's perception of its worth. Check out the price list at Bang &
Olufsen to see what we mean.
11. More beautiful/quirky/etc
packaging
Ah packaging, the marketing executive's closest ally. The power of
packaging allows you to dress up any product to the price point you
want. Benefit cosmetics are a textbook example of the
way it can set the tone for your entire brand.
12. Designed by someone cool or endorsed
by a celebrity
Not easy to secure, but very powerful. Think celebrity perfumes -
they might smell like molten plastic, but they sell like
hotcakes.
13. Quieter
Applies to any product that makes noise when used, with the
exception of speakers (especially subwoofers). Noise is annoying.
Eradicate for customer zen - which equals repeat custom.
14. Fresher/tastier/healthier/more
organic
If you sell food or drink, you can do what the supermarkets can't.
You can make things on-the-spot, preservative-free, and downright
delicious. Do it.
15. Greener/more ethical
Whether it's recycled, recyclable, or in some small way helps the
plight of Tibetan goat farmers, it taps into the biggest consumer
trend to hit the middle class since Boden.
16. Sourced in Britain/locally
sourced/home-made
This holds ever-greater sway, not just because it cuts
emissions, but also because people increasingly want to know where
their stuff has come from.
17. Approved by a respected
organisation
This holds similar kudos to celebrity endorsement, albeit probably
with a different crowd. Jump through the hoops of a trade or
standards organisation and then stick their approval seal on every
bit of marketing material you've got.
18. Not tested on animals
This holds sway with plenty of non-veggies, so it's well worth
shouting about.
19. More daring
Sex still sells. And as a small business, you can take far more
risks than a large company confined by 50-year-old policies. Risqué
appeals to a far-wider net of consumer than you might ever have
imagined.
Your service
20. Better customer service
This is such an easy one - and it's free. Smile, be polite,
build relationships with your customers and respond to complaints
quickly and calmly. It's that simple. But it's something big
companies find impossible to do well.
21. More favourable opening
hours
Whether you go 24/7 or just open Saturdays when your rivals are
shut, making a customer's life more convenient and shaping your
business around their lifestyle is guaranteed to bring them through
the doors.
22. Faster delivery
Hire a crew of Hell's Angels if need be, because this one can make
or break a buying decision for time-poor customers.
23. Offer online ordering where
competitors don't
As we said, convenience is a number one priority for an
ever-growing number of consumers these days. So let them buy your
products while they're browsing the web at work - and get sales
coming in 24/7 too.
24. Your website is more
efficient/reliable/quicker/simpler
We can't say it enough: websites are key these days. Get a good
one, and you look professional and encourage people to get on there
all the time. Read more here on how to get
it spot-on.
25. Offer freebies that competitors
don't
This can be something as simple - but as utterly charming - as
offering customers a cup of tea. It really does make all the
difference. Check out Supermarket Sarah, who does just that to
entice weary Saturday shoppers in to her tiny premises.
26. Being UK-wide or
international
A broader reach will win you more customers and give you an edge
over those who only deliver down the road. It takes a lot of
organisation and careful management, but can work wonders.
27. The gender or age of
employees
See what we mean by checking out Smarta 100 winner Home Jane,
whose women-only handyman (or handywoman!) force get the contracts
from women's refuges and hostels that other companies couldn't. And
watch our video interview with Livity founder Sam
Conniff to find out how to leverage age.
28. Employees' expertise or
demeanour
The best salespeople are those who know their subject matter
inside-out. As a small business, you can nail this one, because
you're most likely to employ people with a good dose of passion for
what you're doing. Use it: train staff to know your product and be
happy to explain it in-depth and make recommendations. Think of the
service you get in independent wine shop for inspiration.
29. Employees wear uniform
A small thing, but a powerful one. It makes your business look
more professional and trustworthy, which can go a very long
way.
Your business
30. No frills deals
Some people like it straight-up. Take a leaf out of Ryanair's
book, or just strip down your premises and packaging to their bare
minimum to appeal to time-poor, fuss-free individuals.
31. Loads of frills deals
Of course, for every minimalist there is a, um, maximist. Chuck in
lots of complimentary bits and bobs, pamper your customers, and
make packaging nice and froufrou.
32. Wider range of products
Variety is the spice of life - but that doesn't mean your shelves
need to rival Tesco's. Go niche, then go broad within your
specialism. If you have more trowels than B&Q, the gardeners
will come to you.
33. Better payment options
This is a difficult one if you're an early-stage business because
cashflow is so key to your survival, but if you're
longer-established and have enough in the bank to allow a 100-day
payment period, you have a big edge over more stringent
companies.
34. Better located
That can mean nearer public transport, or with parking facilities,
right through to having a beautiful view. Or simply being the first
of your kind in an area. Location, location, location applies just
as much to commercial premises as private property.
35. More pleasant premises
Whether you go for a super-sweet old-fashioned tea-shop vibe, a
vibrant wall mural, or ultra-chic interior design, surroundings
doth maketh the experience. Make your premises memorable and
beautiful, and customers will want to come back.
36. Having an outdoors
Sell food and drink? Have a garden or a pavement? Great - you've
just doubled your covers for every single month of summer. And
winter too, if you get a gas heater and a couple of pretty
lamps.
37. Being charitable
Put in an hour or two a week at your local old people's home,
donate 5% of your profits to charity, sponsor the local kids'
football team - anything along these lines, modestly publicised,
will win customers' hearts.
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