Successful business owners know they must take into account
their market and their competition in determining the right
business strategy to implement in their business.
Ignoring these two factors and taking the stance of, if I
build it they will come, will lead to business failure.
In a market where the business owner has little wiggle room
when it comes to pricing their products and services it's
necessary to find another method to gain a competitive
advantage, which equals happy customers and lots of them.
Recently at a local business meeting I "mentioned" the
higher local prices to a business owner. This owner
proceeded to explain to me that he didn't want to compete
on price alone but on Service. He wanted to be thought of
as the "Nordstrom" in his industry.
Now I'm a long time dyed in the wool Nordstrom shopper, so
when he said, "be the Nordstrom of his industry and compete
on Service not price" - I got it.
I decided long ago it was cheaper in the long run for me to
pay Nordstrom prices because if I bought and then decided I
didn't like the item for any reason I Never had any
problems returning it, unlike other department stores who
insisted on a No Return Policy. In addition Nordstrom's
customer service is excellent with their sales force
willing and happy to help you whether you're buying or
returning. I am a loyal customer for this reason and since
Nordstrom continues to grow and profit I can only assume
that many feel the same as I.
Now this local business owner knows he can't compete with
larger stores who offer the same products at a lower price
so he determined to be competitive by using Service as his
competing business strategy. Once I understood the
"Nordstrom" service mind set behind his products I became
his willing happy customer.
This business owner did 2 important things with me: (a) by
mentioning a well known company, Nordstrom, and aligning
his store with their name, he made his store philosophy
immediately recognizable, likable and sellable (b) next
rather than be offended at my questioning he took the time
and effort to explain what his business strategy was and
why.
Today the small business owner competes with bigger stores
who can buy in more volume and charge lower prices. You can
also shop over the internet from the comfort of your own
home and have it the next day. The Internet has become a
bigger threat to the small business than the store down the
road.
So then what does a small business owner do? Give up and
close its doors? I suppose that's one strategy but if
instead you want to run a business and a profitable
business with happy customers then "Service" might well be
your competitive advantage. I believe most people want to
shop in their local areas and they want to touch, feel and
see what they buy. Running a business, big or small has
always been about finding your competitive advantage and
finding the business strategies that work for your
business. Service will always be a deciding competitive
advantage and like Nordstrom has proven, will bring you
happy customers.
----------------------------------------------------
Jean Starling holds an MBA in International Business and is
an Author, Business Strategist and Executive Coach. Go to
http://www.leaderstakingthereins.com to get your Free
Leadership Home Study Course and learn how to be the leader
that people want to follow. Contact Jean at
mailto:jean@leaderstakingthereins.com .
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