Know Your Competition

Make no mistake. Your competition is spying on you. Wait, let me clarify that. Your smart competition is spying on you.

They are trying to be different from you and everyone else. Your competition is adopting their own “Blue Ocean Strategy”(great book) in how they really separate themselves and rise to the top in business.

Think about what rising to the top would mean to you. More money, personally growing, making a big impact in your industry – getting your mojo back.

Study your competition. What’s working for them and why? Here are a few items for you to research and think about:

• What problems are your competitors offering to solve when selling to customers?  You need to be clear on the problem you are solving so that you can create a solution that stands out from your competition. Are you trying to solve a different problem or the same one as your competition? Create a product or service that solves your clients’ problems, is easy to use and has high margins, and you’ll have happy customers. That’s what Apple did when they created the iPad.

• Is your solution the same as your competitors? If your solution is the same, it is going to be hard for you to stand out. Package and deliver your solution in a distinct way. Decide how much money you will spend in a better client experience.

•• Think of Ben and Jerry’s ice cream. They sell ice cream like many other companies. But their ice cream flavors are as unique as their names – Schweddy Balls and Goodbye Yellow Brickle Road. Their ice cream is also packaged in an Eco friendly way. Cool solutions!

• What is the benefit to your client if they buy from you vs. your competition? Some key benefits for your clients usually fall into one of these categories: making more money, saving money, saving time, making something easier, and increasing happiness. Domino’s Pizza banked on saving customers time by marketing the delivery of their pizzas in 30 minutes or less. The benefit of a faster delivery brought in more sales.

• What are your competitor’s prices? You need to know how your prices compare to your competition. Once you know this, you can decide if you want to charge a premium price, a fair price or a cheap price.

•• Pricing is so key for your business. If you can amplify, tweak and improve one of your competitor’s solutions at the same price, you may be able to increase sales.

•• If you are going to compete only on price, that’s a very tough road because it means you are selling a commodity. It opens up the possibility that at any time, someone can come in and sell your product/service at a cheaper price than yours. Instead, price your stuff in the fair and reasonable categories. It will give you better wiggle room with your costs to create a great product/service.

It’s time to get to work. Get to know your competition. Go undercover. Start spying. Make it happen.