Here are some tips from us on how to more effectively compete with a big business competitor located near your small business:
- Know what you can and can’t do. Some big retailers spend tens of millions of dollars saying they are the cheapest. A small business cannot match that spend. So, price should not be your focus as it is a harder road. If you do choose to pitch on price, you need to do it comparatively and consistently. List their price and your price. However, the risk is they will chase you down that hole and their pockets are deeper than yours. I recommend against competing on price.
- Understand the new competition locating near you. Research them, visit their store, look carefully at what they do. Understand, from a rational perspective, why they are a successful national company. Visit several times. Try and talk to customers. Knowledge gained from such field trips will empower your planning and decision making.
- Focus on your point of difference. If you do not have on, get one, develop one. Own it. Ensure your business owns it. If it is service, make it better, if it is range, make it better., If it is that you are local, shout this from your rooftop. Your point of difference needs to be seen, heard and understood by your customers and those who would be your customers. If you do not think you have an obvious point of difference, work hard to build one and embed this deep within your business.
- Promote your business. Professionally. Be smart. Big businesses are usually big advertisers. You need to advertise too. To the level you are able within your business. This could be in the local newspaper, on local radio, in flyers to homes or even with a terrific display in your front window. Promote your business and in particular your point of difference. Small businesses can win in social media with locally-focussed pitches which demonstrate your local connections.
- Network locally. Connect with community groups, charities, sports groups, schools, clubs and friends. A small local business can do this better than a big business. Find a way to connect and help. This will be appreciated and, hopefully, rewarded with business. Strong networking can help you get more people on your side and supporting your business through strong word of mouth.
- Have a consistent loyalty offer. This needs to be different to what major retailers do. It needs to be whole of business. It has to offer genuine rewards which get people shopping your shop rather than staying within a category. This is where discount vouchers work.
