| Develop Your Competitive Edge |
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Aim to have a competitive advantage over your competition
A competitive edge is created when a consumer easily chooses one product or service over many others when buying a certain type of product or service. When your product /service is more easily chosen above your competitors, then you have a competitive edge, also referred to as a competitive advantage. Hopefully you have created a product/service which already offers something different than any of your competitors, so by definition you already have an edge. However, the trick is getting the consumer to recognize this difference, and then prefer your product or service over the rest.
Before you can work on increasing your edge, you need to know what it is in the first place. Start by asking yourself – what is it about my product/service that is unique? What do I offer that is different from everybody else? Secondly, you need to study your consumer, both your current ones and potential ones. What is it that makes them buy your product? Why do they choose one product over another? What is it they are looking for? You will need to do some market research to study your consumers and find what it is they value most when choosing a product or service.
Once you know your consumer, and you know what makes your product/service stand apart from the rest, there are some things you can do to strengthen your competitive advantage. Below are some of the best methods for increasing your competitive edge:
1. Have the best price. Notice I did not say the lowest price. Not all new businesses can sustain offering a product at a very low price. You need to make sure you can cover all of your operating expenses. Plus, a competitor with more money than you may match your price, causing you to lose out on any potential short-term profit from a low price. You need a price that will be the most competitive price you can offer while still covering expenses. A best price is when you offer the greatest amount of value for the price of the product/service. When consumers feel they are getting the best value for their money, they will prefer your product/service.
2. Fill a need. The easiest way to build an edge is to have your product/service fulfill a need that is currently not being met. First, however, you must determine that a need exists. To be able to sell a new product/service in a new market you must know that there is a need and/or a desire for this product/service and the consumer is able to afford to purchase it to fulfill this need.
3. Be the most convenient. A lot of times consumers will purchase whatever is the most convenient for them. There are many different types of conveniences, the most being the location where the product/service can be bought, the amount of time it takes to receive the product/service, and the different payment methods accepted. If you are selling online (easy location) make sure you also have a fast delivery, and many different payment methods (credit card, debit, etc.). Sometimes consumers will buy what is easiest, not what is the best. For the best advantage, increase your convenience.
4. Have quality customer service. When consumers feel they are taken care of, they are more likely to develop a loyalty for a particular product/ service. Customer service cannot be overlooked. If you offer the best price, but do not have an easy way for consumers to call and talk to someone about the product, they might be deterred from future purchases. When you are easily accessible and on hand to answer any concerns, consumers may be prompted to choose your product/ service over a lower priced competitor. Consumers are always the number one priority of any business, so make sure you are able to be of assistance when they need it.
5. Be the first one. This only applies if you are creating a new product/service that does not currently exist. Being the first of a kind can be tricky as you don’t know for sure if your product or service will be desirable to consumers. You have (hopefully) done market research to determine it might, but you won’t know for sure until you sell it. Then if you are successful, you can bet you will have many competitors mimic you. But, since you were the very first offering, you will have the advantage of being the most well known.
If you are successful in gaining a competitive advantage over your competitors it will result in increased sales and increased profits. Doing the work now to determine your edge and act on it will benefit you for years to come. |
