SolveYourProblem
eBusiness Series:
How To Start
Your Own Retail Business
From Preparation To Profitability
( 15 Pages )
Know
Your Market
Know Your
Competition
Once you have
decided what type of retail business is best for you, you
need to know who your competition is. Knowing this will help
you to decide what your plan of action will be in dealing
with them.
You will want
to know what their successes have been and what their pitfalls
have been as well. You will want to avoid making
the same mistakes that they have, but it is always good to
know what works as well if you plan to compete. In
some cases, you may find that the best way to compete with
your competition is to not compete at all, especially if
they have established a long and trusted reputation with
their consumers. In this case, you will want to compete with
them without competing with them at all. Below are some ways
that you can do that.
You do not want
to alienate your competition or build feuds with them because
they can be a source of great help to you if you know how
to approach them. Here are some good examples of ways that
you can create a good rapport with them.
1. Offer
to be an affiliate of theirs. This way you can ensure that
they will send business your way if they cannot meet the
present needs of a customer that you can supply.
2. Offer
to not place certain items on your shelves that they stock
and ask them to do the same. Grocery stores have this idea
down pat. What they do is divide certain popular goods among
themselves so that only each chain only serves certain hard
to find items that are popular. This ensures that each chain
will not be in direct competition for certain items. Each
gets their own special item that none other contains. It
is a great way to promote one another without causing any
problems. This is a nice way to cross advertise.
3. Do
not place your store directly across from any major competition.
Doing this will only give you a 50% chance of success; lower
if they are already long since established. Satisfied customers
rarely wander into the new competitor’s store.
4. Try
to market your prices at a better bargain than your competitors.
If you can’t, place your inventory in a more satisfactory
arrangement. Sometimes it is all about the appearance of
things.
5. Assess
your competitor’s success rate. Learn what they are doing
that is so great and offer something better or at a more
reasonable price.
These are just
some of the things that you can do to present yourself in
the best light possible when dealing with your competition.
Of course nothing beats putting yourself in your consumers’
position. You must think of of what you would like in a retail
outlet so that you can best compete in the market.
You should also
keep your eye on their marketing and promotional techniques
because it will help you to keep up with them better. All
of this stuff should be placed directly in your business
plan if you want to show that you are prepared for the tasks
and potential problems that can arise.
You will want
to know how the competition is faring in the market also.
You do not want to get into a market that is already unsuccessful.
You must assume that if your competition is doing badly,
that the market isn’t as good as you may have hoped. Naturally
you should double check your information because it is possible
that your competition may just not be meeting the current
demand properly. If this is the case, then you should look
for the best way to meet the need in a better manner.
 
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