Being a business owner has its ups and downs, and it can be a total pain if your competitors are winning against you. What are you doing wrong? What could you have done better? Here are three ways to win against your business competitors:
Nail the Mechanics of Pricing
It’s crucial that you monitor competitor prices. Setting prices without considering your competitor’s pricing is a big mistake.
Even if you think that you’re not competing on the price, you still are. Imagine that you are selling products that come with a premium because of the quality or source. The difference in price is expected, but the amount should be easily justified. If you need to go into a long explanation before establishing the reasons, you’re going to fail.
Customers take seconds to decide what products to choose off the shelf. Online, they do their research but only pay attention when the content is easily digestible and engaging. Are you failing to communicate your premium price? Or maybe the price difference is challenging to justify? You need to go back to the drawing board if that is the case.
Know the Market Inside and Out
How well have you studied your market? A big mistake that many business owners make is looking at all similar products as competitors. A failure to do deeper digging can make you compete with products that are really on an entirely different category.
Who is your ideal customer? With your team, list down the attributes of your prospective buyers. Build a perfect customer profile that will give you a clear and better idea of who will buy your products. From there, you can create a matrix of the products that address the same needs. Where are you on that matrix? Are you providing as much value as you thought you were? Understanding the market is essential when determining your next steps. “Know thy enemy” also applies in business.
Every business comes with its own set of strengths and weaknesses. Using your strengths to your advantage and competing with your rivals can lead you to success, but the key is to dig deep and learn about the market. Good luck!