I want to propose a small task to start.

Do a little market research of competitors to 5 items:

1. Price.

What are the prices they ask? Your prices should not be mean. There are will be or above or below market.

2. The quality of the goods or services. How you can provide a higher quality. As I wrote before your quality should be better at 5-10 per cent to start.

3. Methods of promotion. This is one of the important points.

Find out where they provide advertising, what action they do etc. What is the main focus. Sometimes (but not always) easy to find the perfect way to promote your competitors and your market share. This could be advertising in the newspaper where there are no such ads, radio, television, Internet, etc.

At what customer they oriented. Age, sex, social status, etc.

I will return to this question one of these issues but now we concentrate on the uniqueness.

4. The level of service. Staff.

What is the salary of staff? Do they lose customers due to the fault of poor service? Visit their office or call a customer.

5. The uniqueness of their business.

What are the bonuses they offer? Additional services, etc.

To benefit from my list you need to always perform this task!

In the previous issue I gave the task to conduct market research of competitors. Those who fulfilled already know what to emphasize in your business.

But judging from the letters the majority conducted market research and came to the horror that much more competitive advantage and can not fix this picture.

Now I want to answer the most common items:

1. A competitor's prices are lower.

I will not write the obvious in the style to change of the supplier, to reduce costs, etc.

Just honestly answer the question:

And why do you think that your prices should be even lower?

Unfortunately many businesses are competing in terms of lower prices. And what happens? You reduce the price and your competitors too... Is this easier way? Look to other types of businesses. Is it beneficial whether lowering prices entrepreneur? In such a competitive loses all market.

Exception:

1) If the average customer is looking for a really low price he is simply not ready to pay a certain amount of money for goods or services. For example, is it easy to you to sell «Mercedes» client who came to buy «Zaporozhets»(a small auto like “Beetle”). But do not just need to put your business under this item. It’s better asking the consumer about this.

2). To reduce prices to the level of self-sufficiency or lower - a great way to survive a competitor(s).

So if you not want to be in this race you need to be positioned at the other end. For example to show the consumer that quality is higher than those of competitors, improve service, etc.

And if you do decide to lower the price remember that the main cause of the decline in prices similar to competitors' reactions. Once again consider whether you have enough resources to this struggle.

The best way to position to «paragraph prices» is specialized in sales of goods or services to a certain price category for the quality. For example, you can to sell the cheapest or most expensive products. Incidentally, this is an excellent opportunity for small entrepreneurs to declare himself. For example, we have low prices (about the quality we keep silence) we have excellent quality (we keep silence about prices).

Option: low prices, excellent quality, if not in words, you just call the above reaction from the competitors.

Example: you sell cars average market value of 300 thousand rubles.

In the case of quality positioning you exhibits price (based on cost recovery) to 320 thousand rubles. Then you add warranty, branded services, railway transportation and etc.

In the case of low prices sell this car for 280 rubles without guarantees, etc.

2. A competitor's best quality of goods or services.

And who can really appreciate the quality? Username or specialist who knows all the nuances of your business? The outcomes vast majority is important.

But how to prove a consumer you are products (selling) high quality goods or services?

1). Very often the consumer oriented in prices. There is a stereotype - the higher the price, the better the quality. Therefore, in some cases where the consumer does not know the criteria, it will focus on price.

For example, you sell the car second hand and at the same time exhibits a very low price, a potential buyer does not understand in cars may think about the future costs of repairs, nerves, etc. Perhaps even he buys another car or that - same brand but more expensive.

Just do not overdo. If the client eventually learns the truth I doubt - whether he would ask you again might also go relevant news about your company.

2). The obvious way to express the consumer about the quality is to tell him directly. In this case, remember the customer may feel obvious lie. For example, if you sell cell phones on the market and represent that the goods are more reliable than in the large specialized shopping center, the reaction of the buyer may be inadequate. In this case it is better positioned to lower prices.

3). Tells about the production process. It’s not bad to every trifle. For example, attached to special bolts that attach the special strength of attachment, as opposed to ... Client, ignorant intricacies of your business may think that you are using some new special technology it is better than the rest. And in fact, the manufacturing process of all nearly equal and it is not even be considered cheating because you speak the truth and the competitors just talk about it.

4). There are special exhibitions, the nomination, leagues, etc. For example, that are «100 best goods», «Russian Guild of Realtors» etc.

Earning and/or paying a certain fee you can clearly hint of quality in open sources. For example, for real estate agencies in advertising and not only can be used: a full member of «Russian Guild of Realtors».

3. A competitor has the possibility of credit in place; his location is in a prestigious shopping mall with more room space, more equipment, etc.

In fact, apart from lack of resources nothing prevents you to do the same. But it will not be your uniqueness but rather as obvious. If resources permit - implemented. Identify and implement a unique, as a result - boost sales, will increase profits and already out of it, you can invest.

Also, this situation can be accessed by arrangement with other entrepreneurs who have everything of this on the mutually beneficial cooperation.

Another possible options: leasing, credit, etc. But in this case, make sure that everything is paid off.

4. I have a business location in a prestigious area where too many competitors who all have nothing new to invent. I have a business in the residential area where there is little selling, regardless of uniqueness.

One funny incident occurred to me the other day. I receive a letter with the question: «I have a store in a prestigious location in an area where too many competitors, who all have to invent a new and very hard. Maybe I should move to an area where less competition? »

The same day came another letter: «I have a business in the residential area where the people do not need, do not even need a unique business because - I am one of the area and it is unique. But sales are still weak in contrast to those located in the heart of the city where the heap of competitors at every turn ».

Since problem they had was almost total and I brought them among themselves. After a while, I’ve got thanks problem solved.

If you have a similar problem, look opposite opinion.

5. The level of service.

This is magic stick for small and start-ups entrepreneurs. It is the quality of service can best be positioned. It does not need the huge cost and it is easy to implement.

Unlike the larger already «fat» competitors (but not all) in your case may be the next: the lack of queues, individual approach, friendly staff, etc.

For example, a taxi: the minimum waiting time, friendly taxi driver greeted passengers, says: «Thank you for having taken advantage of is our taxi, try to justify your expectations». At last, he wishes good luck, etc.

Or sitting down in the smoked salon: do not slam the door, etc.

How would you taxi to take the final or the first, even if the first price is higher?

Business - trainer, consultant Sergei Surov.

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