Competing Within Your Industry

Sadie Keljikian, Express Trade Capital

Standing out in your industry can be tricky, especially if you work in a competitive field. To get ahead of your competition, it’s important to develop and demonstrate the unique qualities you and your business can offer. Here are a few ways you can distinguish yourself from other players in your industry and break away from the crowd:

• Price

It may be the most obvious point of comparison, but if you can distinguish yourself on pricing, you should do so and you should advertise as such. Compare yourself to businesses that provide similar or identical services/products and demonstrate your ability to fulfill the same need at a lower price.

Beware of competing with bigger businesses on price. Larger companies can generally underprice smaller ones because they typically have lower costs due to economies of scale. Moreover, although extremely low prices may bring a surge of new business, it is important to make sure your profits are sustainable.

However, lower prices are not always the answer. Sometimes, a higher price signals quality for which customers are willing, and even eager, to pay a premium especially if they believe those items are better in other ways . . .

• Quality

If you can provide and demonstrate quality superior that of your competitors, it won’t necessarily matter if your prices are higher than your industry’s average. In fact, counterintuitively, higher prices may attract more purchases in the right circumstances. Many customers are willing to spend more for quality assurance. Whenever possible, use objective data to support your claims.

• Speed/Efficiency

Some industries are notorious for taking a long time to process orders or engage services. If you have created an effective system to speed up your processes vis-à-vis competitors, let your prospects know! This is an especially attractive perk to offer when you sell products or services that your customers typically need upon demand. Customers want to know you can deliver quickly and efficiently.

• Scope of Products

If you have a wide variety of goods or services, and/or if you offer a combination of goods/services that is rarely offered in your industry, you’re already ahead of the game. Business clients particularly love a one-stop shop. If they find a business they trust and with whom they like working, they’ll want to take full advantage of that business’s range of offerings rather than shop around for multiple providers.

Having a wide range of products also allows for sharper pricing through bundling, which can increase cross sales by enticing consumers to purchase other products in your line. For example, you can cut the price of one product if a consumer agrees to purchase an additional product.

• Business Ethics/Values

Good policies and philosophies can be marketed to distinguish the quality of your business. Recently, advertising conscientious business practices has become a massive trend everywhere from independent retailers to international corporations. Whether you focus on helping the environment, meticulously sourcing your goods and labor to observe fair trade policies, charitable giving, or any other activities that demonstrate your business’s ethical beliefs, it’s a good idea to publicize your efforts.

• Reputation/Client Loyalty

This is more relevant to businesses that have been in operation for a while and have developed a following. One of the most favorable things a customer can hear about your business is that your clients/customers stay on board with you after your initial transaction. It means that you treat your customers well and run your business ethically, so always strive to keep existing customers coming back for more.

• Honesty

This is similar to business ethics and reputation. Unfortunately, many businesses stretch the truth in the sales process or pull bait and switch tactics to win clients. Many of your prospective customers have heard sales people make over the top claims and gloss over their disadvantages or imperfections. Fortunately, this creates an opportunity for good businesses to capitalize on the poor reputation of their less scrupulous peers.

While deceit sometimes seems like the best way get immediate sales in the short term, prospects will quickly discover the ruse and eagerly post poor reviews. Consumers respect you and your business more if you’re upfront about what they can expect from you, even if the truth is that you cannot deliver on certain requests. The more open your line of communication with them, the more inclined they’ll be to work with you long term. In the long run, it is often better to under-promise and overdeliver than vice versa.

• Flexibility and Customization

If you can provide more hands-on services or otherwise offer flexibility or customization, many customers are willing to pay more or forego working with larger or more established companies whose operations are too large to accommodate those personalized specifications. Some larger companies deliver goods or services in set ways that have little flexibility because allowing for individualized customization may cost too much to implement on a wide scale.

In fact, many larger companies systematize their processes, which reduces costs and increases efficiency for their clients in many instances. However, systemization can also make larger companies unable to service more specific and specialized consumer demands. Smaller companies can take advantage of this by filling in the gaps where their larger competitors are not willing to venture.

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Many of the above listed qualities bleed into each other.  For example, better quality allows for higher prices and honesty is directly related to business ethics and reputation which are both in turn facets of your quality.  Meanwhile, good customer service and sales practices can improve the perception of your business in virtually all areas.

The key is to see your business on a variety of dimensions which will allow you to distinguish yourself on multiple fronts. A competitor may be larger and have many more years’ experience but they may be set in their ways and inflexible when consumers require them to deviate from their standards and practices.  In short, dynamic businesses who stay vigilant can stay ahead of competitors by seeing and seizing on opportunities and gaps left by competitors.

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