Wednesday, May 8, 2013

Keeping an Eye on Your Competition

Knowing what your competition is doing should be an essential part of your business intelligence activity.

If your shop is selling ham sandwiches for $6.50 and your nearby competitors are selling them for $5.25, you will be losing business unless your sandwiches are bigger and better value for money than your competitor's.
If they are bigger and better, your advertising should say so. That way, customers will know why your product is more expensive.

People shop around and look for the best deals. While you may think that nobody really cares about shopping round with such low cost products, they do. Not everyone has a budget with an unlimited surplus to spend on food. For some low income earners, buying a sandwich for lunch occasionally is a luxury ... they want to get the best they can for their limited spend.

With larger cost items, prospective customers are now searching the Internet comparing prices between stores. Many are ordering online because prices delivered are often cheaper than what they can buy goods for locally. With the advent of mobile phone technology, customers can compare the price of another firm's products from your shop floor.

If your sales are unexpectedly lower than usual for the time of year, go for a walk or get on the telephone or Internet and find out what your competition is doing. If you have the time and resources, run a customer survey a couple of times per year to find out what your customers think. A survey can also be an excellent opportunity to ask customers for their email addresses so you can send them messages when specials are available and on occasions like Mother's Day.

Robin

2 comments:

  1. Most of the costumers, look for a products that has a good quality but affordable prices and as a business owner, you should focus on that especially in your sales and provide their demand.

    ReplyDelete
  2. Thanks for commenting Donnell. It's true that customers look for quality products and good prices. Sometimes you have to pay a bit more for quality.

    ReplyDelete

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