Over the last couple of decades, few things have changed the landscape for small businesses as much as the advent of huge megastores. In communities across America, downtowns were shuttered once a Wal-Mart opened, and the friendly local hardware store had to close its doors when a Home Depot moved in.
Here’s what the survivors are doing:
• Specialize. Big stores aim at big markets; they can’t afford to market to and serve niche markets. You can. Identify a segment of the overall market with special needs and tailor your offerings and service for them. For instance, if you run a small nursery, it’s hard to compete with Home Depot in selling inexpensive but uninteresting plants. Instead, target those needing more innovative or specific plants, such as landscape architects, organic gardeners, low water-use commercial gardeners. You can compete with Home Depot for these and charge more, too!
• Compete on your terms, not theirs. You won’t be the low-price leader; they will. So don’t try. Instead, clearly differentiate yourself from them. Make the experience of doing business with you as different as possible from going to a superstore. That means you’ll have to be more convenient, more service-oriented, more responsive.
• Differentiate what you sell. Offer a mix of products and services that are clearly distinct from the big competitors. Make it hard for a shopper to find the exact same thing elsewhere.
• Outsmart them. Big companies move slowly; you can adapt to new trends and market developments more quickly. Stay abreast of industry and market trends. Keep informed. You can’t just take care of day-to-day business; you have to plan a strategy for even the smallest company.
• Link service to purchases. We’ve all had this happen — we provide great presale advice and then the customer buys from a cheaper store or website. Look for ways to offer desirable or unique services as an add-on benefit as part of, or after, the purchase. When I purchased my barbecue grill at a local hardware store, they included free delivery and assembly — services I would have had to pay extra for at the hardware superstore. One local bookstore hosts special events with leading authors — open only to those who purchase books from the store.
Read more.
Photo by thadz.
Be Smarter Not Just Smaller
June 19, 2008 by Rich | 3 Comments
In Advice, Customer Service, Success
David Cheong on June 19th, 2008 at 1:22 pm
Mostly preferred the word “customer service”, we as a customer would choose customer service then quality of products.
Curt on June 19th, 2008 at 2:31 pm
“Link service to purchases” - This one idea has served me very well. I sell most of my products because of this.
cassy on June 23rd, 2008 at 1:47 am
Many business owner now have many strategy or promo to make to attract their costumers.