This is one of the most common questions by lots of entrepreneurs who unexpectedly found their company affected by the opposition. Today I’ll inform you what to execute and how to sell more at price higher than your competitors.
Accept the competition: Accept the competition as a natural matter and think it’s a part of your business. You have to set in your mind that competition in business is normal. Do not think to fight against a system which is completely natural.
Don’t panic. After facing competition in your business asks yourself, how are you? Are you still in a cool mode? Many entrepreneurs have a tendency to feel panic for competition in business and begin to price lower or invest extremely huge amounts on advertising that may finally create problem like fund crisis. My suggestion is to make a strong caring policy to come out as a winner. The first thing to be clear when you face a situation how are you, is that you remain calm.
Don’t lower your price: Do not fall into the excitement to recover falling of sell by lowering prices. This is probably the first temptation in which we fall when we see someone begins to steal our customers. However, this step may be worse than if we do as part of a strategy. There will be an appropriate time to level your prices but you must wait to perform other actions previously.
Reduce your costs: This if the first important step and should be executed immediately. It is important to better manage costs before the best prices. Evaluate your expenses, seeking better benefits to your suppliers and applies all possible actions to save on your business. This will ease the burden slightly economic margin and leave you as you develop other activities.
Innovation Ideas: There are several ways to compete and one of them is innovation. Innovation comes from the word “innovare” that has to do with learning, to improve, to produce something “new” in your business environment. It is therefore desirable to sit as soon as possible with your team and brainstorm ideas for alternatives. For example, if you own a car wash and offer traditional services, innovation would put a TV room for the convenience of your customers and offer them coffee and newspapers at no additional cost while their cars are shiny.
Improve your current products and services. Whatever your business, another way to compete is to improve what you do. The Japanese use a term for continuous improvement and Kaizen. It means that everything you do can be improved. If you find that you can thoroughly evaluated to streamline all your processes, making them faster and less expensive. Ask yourself what I can improve today?
Give your customers some “Special Offers”. Customers love this phrase. All as consumers are attracted by the offers because they convey the idea that I will get more for less. So before you sacrifice your prices, prepare a strategy where you can offer any additional benefit to those who consume more on your business. For example, if you have a catering or food sales, could offer a free dessert on Friday, or complimentary beverage consumption in groups of 5 or more people. Here it will be very important to be creative and make your numbers for your bids represent the desired benefit.
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