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Retail Businesses: Learning How To Compete
1. Consumers tend to be creatures of habit. They find
something they like, something that meets their needs
and they usually stick with it.
2. They tend to only change when something really, really
compels them to do so - and that is not always price.
3. Retail businesses face a lot of competition; from similar
size stores, online marketplaces and big box stores. These
entities, if not managed for, can easily drive your retail
company out of business.
5. No business can carry every item or even every
style, shape or flavor of every item.
6. What this means is that these businesses or any business
for that matter can't satisfy all customers. And, if a
customer cannot be satisfied, that is an opportunity for
another business - namely your business.
7. Have you ever gone to a store to find a certain brand or a
certain quality only to find that they either don't carry
it, quit carrying it or just are simply out of it (shown by the
big empty space on the shelf where the item use to be)?
8. I know I have. If you have, then you understand that
feeling. The feeling that you either have to go somewhere
else (big waste of time) or settle for another item; an item
that you either don't want or that does not fully meet
your needs.
9. Knowing that any one store (online or off) cannot be all
things to all consumers opens up several ways in which
retail businesses can compete - even against those big box
stores; here are three of the top ways:
11. Big stores like WalMart and Target carry a lot of products
from household goods, clothes, toys and jewelry to
furniture, music and food.
12. In order for them to carry that many different
products, they can only carry a few styles or types of each
item.
13. Go to your favorite big box store and try to find a pair of
running shorts that are light blue in color. What you will
find is that they carry different sizes of black or white
shorts but not ones of different or unique colors.
14. These stores just don't have the shelf space to carry all
colors so they only carry items that they hope will
resonate with a larger majority of consumers (standard
items).
15. But, if your retail business can offer more colors or even
more styles - your business can attract and retain those
customers who want something more than just the
standard product.
16. And, this does not just mean keeping a large selection of
brand name goods as many times off brand products offer
just as good or better quality at reasonable prices.
17. You've heard the old adage with many well known
products that it's not the product that commands that
price as half the price is just in the name.
19. I hate going to a store, a store that I know carries a certain
product, only to find out that they are out of that product
- that the store either did not order enough or that I was
not there when the shipment came in.
20. I really hate it when I make that store my destination
knowing that they carry that product only to drive all that
way and find out they are out of that product.
21. Doing so, not having the products on hand that customers
want, when they want them does not instill a loyalty in
that customer.
22. If your can keep its shelves stock - stocked with products
that your customers know they can come and get at any
time - opens up an opportunity to instill a sense of loyalty
in your customers as well as attract other, frustrated
customers.
23. We are a very busy people. Thus, if we know, as
consumers, that we can go to your store and always
(ALWAYS) get what we want, we are more willing to pay a
little more for that product and that convenience.
25. Most online stores or big box stores compete on price.
Thus, their suppliers have to provide them their cheapest
products. And, as you may know, cheap usually means
lower quality.
26. If your retail business can provide better quality, typically
at higher prices, there are niche buyers who understand
that quality can save them money over time and thus are
willing to pay more now.
27. You go to a big box store or national online marketplace
and buy a table top gas grill for $50. You make that
selection based on price and price alone. This is what
many of these discount stores rely on.
28. You get the product home and set it up. Within a
month, the product is not working and you have to buy
another. What do you do? Do you pay another $50 for the
same product knowing that it may not last a month?
29. On the other hand, another buyer spends $90 in your
store for a better quality gas grill. This grill last the buyer
one year before it has to be replaced.
31. Remember, there are buyers out there, even the most
frugal ones, who will spend more money now - make
larger purchases - if they understand the long-term cost
benefits of buying better products - of buying your higher
quality products.
32. You just have to educate them. And, that means using
your marketing efforts to not just let them know where to
find you or to promote your latest sale - but, use that
effort to educate them on the overall cost savings they will
realize from buying from you.
33. Far too long have we seen big box stores enter local
markets or online stores offer similar products just to
watch local mom and pop operations fold up - taking away
consumer choice and convenience.
34. It does not have to be this way if your retail business can
learn how to compete. Learning to compete takes three
things:
36. 2) Understanding Your Customers - Know what pains or
needs your customers really have that are not being met
or not being met fully and being flexible enough in your
business to provide what they actually need or want.
37. 3) Marketing - if you know your product offers better
quality and thus more long-term costs saving, then you
also have to let your customers know.
Remember, customers are creatures of habit and to get
them to switch to your business and buy your products;
you really have to compel them to and not just hope that
they will figure it out on their own.
38. If you want your retail small business to not only survive
but to grow and prosper in this very competitive
environment, then learn how your business can actually
compete and win against those big boys.
