STOP TRYING TO BE EVERYTHING TO EVERYBODY

As small businesses owners find it increasingly difficult to compete in a crowded marketplace, they try to market to everyone.  Unfortunately you cannot be all things to every customer. If you are that kind of business there is another way. It’s about focusing on your uniqueness. By differentiating yourself from the competition, you are creating valuable space in a very crowded marketplace. More importantly, you may begin to stop competing based on price.

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There is a physician I used to visit. He practices sports medicine.  He did not accept medical plans,  credit cards or ATMs.    Thousands of dollars in cash flowed weekly through that prosperous medical practice.  By differentiating   himself from other doctors, he could charge higher fees, demand cash and avoid slow paying discounted medical plans.

Competing on price is the worst thing you can do.  Avoid it like the plague. When you lure customers based on discounts, you are cornering your business into tight profits. Your customers will begin demanding low price and that is what you will be known for. To give you an idea, if your product has a profit margin of 30% and you give a 10% discount, you’re losing one-third of the available profit. Lowering your profit margins means you have to sell more and work harder for the same net income.  That does not make sense, if you are in business to make money, you should be doing it with the least amount of effort possible. After all it’s never about the money.

It’s time for you to start selling by following a more focused approach; one that will yield the customers you want based on your uniqueness. It’s about finding your niche. This requires two steps. First examine both your business and the competition.  Follow by identifying your ideal client.    Then you can begin to market your business and give them what they want.

Some businesses talk about image development.  I had a client that was approached by ad agency suggesting that he spend thousands of advertising dollars developing the business’s image.  This included a radio and print campaign and sponsorships on mayor events. The theory was that by letting the world know that he existed, many would come knocking his door. Marketing without knowledge of who wants your products – is like following Alice in Wonderland. 

Your marketing dollars must be an investment not an expense. Unless you are a large enterprise, spending money to enhance your image in the community is probably the biggest waste of advertising dollars. The simple uncomplicated strategy is to lead a focused marketing message to your prospects that you are a specialist in what your targeted clients want.