Your customer doesn’t care how much you know until they know how much you care.
– Damon Richards
It’s the news that send shivers down the spines of small business owner everywhere: Walmart (or any other railer big boss retailer) is coming to town, how can my small business compete with largest company in the world? They wonder can my business survived?
However no business owner have threat of this magnitude from giant competitor with greater buying power, more name recognition, and a reputation for driving small companies out of Business, it is no reason to fold up the tent and go home, smart entrepreneur know that, by formatting and executing the right strategy they not only survived in the faced of big boss competitor’s but can thrive in there presence.
Don’t play there game
A fundamental concept strategy is to avoid your company weakness against your big competitor’s strength.for example, because Walmart buy in such a large volume from it’s supplies it can attract the lowest price from then. Were as, small companies purchasing from this same supplies can’t. Therefore it makes little sense for small companies to try compete with Walmart and other grant retailer on price. Or your small companies has another more significant cost advantage, competition on the basis of price is a recipe for disaster. Entrepreneur who compete successfully emphasize feature, that giant discounters cannot provide like.
- Extensive product knowledge
- Better selection
- Superior customer service
- A hassle free buying experience
- Product warranty etc.
Emphasize what’s unique about your company and how they can benefit from then
When brain Kelly, owner of city beans, a coffee shop with two store in northern new-jersey. Learn that Starbucks was opening a location in the same building that house one of his shop, he knew that he has to take action to safe is business. Because Kelly purchase coffee beans from a local coffee roasting, who made deliveries within 24 hours of roasting, He realized that what city beans coffee sold was much fresher than Starbucks coffee. Kelly began a “serve flesh daily,” promotion that gave customers a higher benefit and provide city beans with a competitive edge, also he also re-energized his company loyalty card program, (buy 2 cup of coffee and get one free) which provide him with important information about how customers, include there email address, Kelly whose store also serve a selection of sandwiches salads, and soaps began e-mailing customers in the loyalty program about daily launch and special coffee, and sales increases.
Hit’EM where they ain’t
Big chains aims at big market and often ignore small but profitable niches market, which are ideal target for small companies, when home Depot move into town, the owners of small nusery began changing his company product mix, emphasizing selection of visual plants it’s big boss sold, on addiction, he added a selection in his store dedicated to natural organic gadgetting, free weekend work slope. That taught customer how to build different kinds of garden brought in existing customer more often and attracting new ones. Two years after home Depot opened, the small nursery was generating record sales that were higher than it where to be the resent big box competitor’s appear.
Hire the best and train them
Jeff brotman founder of costo,a discount warehouse that goes up against Walmarts, Sam club discount warehouse has been competiting with the industry giant for two decades, costo pay it worker at rate well above the industry average, which keep turn over rate low (infact the lowest in the industry and productivity high, giving another edge over Walmarts), small companies cannot afford to pay the highest wage in an area, however because there companies are small. Entrepreneurs has the opportunity to create a work environment in which the employee can thrive, once small companies attract and retail quality workers, by allowing them to use quality work schedule that make it earlier for them to manage there busy life, the owner also invest heavily in training worker’s, so that they can move up the organization, and pay scale faster. The training pay off in term of greater productivity, lower turn over and increased customer satisfaction, and higher sales per employee, paying attention to to seemingly small detail, such as
- More communication
- Frequent recognition of jobs done well
- Flexible benefits enable small companies to build a loyal motivation work force that can out perform those at larger companies.
Beat them at service game
In tennis, the serve is one of the most important part of the game, so it is in the retail chain. Small companies often differentiate themselves from the larger more powerful rivals by emphasizing superior friendly personal service. Sometime this price make then uniquely capable of doing, one of the best way to determine exactly how to provide superior service. Is to identify your top five customer and priodically ask them “how can we serve you better.”
Bring back what the big boys have eliminated
Many companies in the supermarket Industry have taken a beating as discount mass retailers have expanded their superstore concept into more markets across the United States, yet many small supermarket chained have thrived by taking a completely different strategic approach, building small stores that allow shoppers to make their purchase quickly and conveniently.