How Competition Is Really Killing Your Business

On June 8, 2012, in Uncategorized, by John Ekonomou

By now you’ve realized the kicker: focusing on competition automatically creates commoditization. The problem with competitive thinking is that it is far more costly to you, the business owner, than you realize. To keep up you do more. By doing more, you instantly increase your cost of doing business. Here is something to think about. […]

By now you’ve realized the kicker: focusing on competition automatically creates commoditization. The problem with competitive thinking is that it is far more costly to you, the business owner, than you realize.

To keep up you do more. By doing more, you instantly increase your cost of doing business.

Here is something to think about.

How much time and money can I put toward improving the customer experience if I am spending most of my time and money trying to out-do the competition?

 

A lot of businesses that are in the competition mindset do stuff like open longer hours, add more products or services to what they offer, and cut labor to increase profit. At first this might sound appealing however, they don’t take into account the consequences of these actions. Theres time, money, and energy that are required to stay open longer, with less staff, to get more. The inefficiencies that result end up costing the business more than just money. The ultimate cost is the customer’s experience… (You know, the guy who actually pays the bills!)

The more you do, the more the cost. More marketing, more advertising, more social media, more trade shows, more phone calls, more time and resources spent, more, more, more… !

And for what? To make less!

The consumer has already been hardwired to believe You get what you pay for! Good. Don’t fight it.
You shouldn’t go against the grain, that’s in no one’s favour. Instead, honor that thinking. Give them something worth paying for!

A business should be increasing things like price, quality, and service. When that happens, immediately you’ll start making your business stand out! The alternative, is to keep to fighting your competitors, instead what you should doing is having 100% focus on on how to make the experience of the customer to be as memorable as possible.

Profit margins take a nosedive. When the price of your product/service is based on your competitor’s price instead of the price that corresponds to the value of the experience the customer is getting from you.  Consequently, in order to stay competitive your margins must take a hit.

Market share gets smaller. If there are thousands of other folks saying and offering the exact same product or service that you are, supply exceeds demand; you’re all fighting for the same customer. This overcrowds the industry, which in turn leads to price and feature wars. And the slices of the market pie get thinner and thinner, and if you don’t have enough money to out-spend everyone else you will go hungry.

Value suffers. Perceptually, the more choices a consumer has for the same thing, the more he begins to devalue the thing. If the consumer does not have a distinctive choice, then he defaults to What’s the cheapest price? Because, to him, it’s all the same anyway. Immediately, this decreases the value of whatever you are offering—regardless of whether it’s really better or not. You cannot fight what goes on in the consumer’s mind.

Spending To Much Money Trying To Get New Customers???

FromMyWhiteBoard.com

You know there are strategies you can use to lower your customer getting methods by 50% or more...

To get more customers cheaper you need to do a 3 simple things...

1. Position Yourself To Be So Different That No-One Can Compete With You...

2. Become The Obvious Choice For Your Customer

3. Make Your Marketing & Advertising Irresistible To Your Ideal Customer

Click to continue…

 

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