Knowing Your Competition Scripture tells us, "My people are destroyed for lack of knowledge." (Hosea 4:6 NASB) Customers have a choice of where and when to spend their money. Our job as salespeople is to convince them to become our customers. When we advertise and communicate with prospects, we need to understand how our offerings stack up against others, and this requires a clear knowledge of our competitors’ offerings. A furniture store may offer the best selection of leather furnishings, but the salespeople still need to know what other stores are selling, in terms of quality, selection, and price. If the store offers the high-end quality, and thus has higher prices than its competitors, the sales staff must emphasize quality—because, if price becomes the issue, the store will lose that sale. If the store instead has lower prices, that’s the competitive advantage that should be emphasized. We don’t need to fear our competitors, but it’s important that we understand them. A Web-page designer knew that many other designers charged upwards of $3,000 for a basic site. In response, he developed a range of basic packages priced from $300 to $800 and used his price advantage to attract new customers. Sam opened a sandwich shop near a downtown shopping district. He reasoned that foot traffic in the area would be brisk during lunch hours. Unfortunately, he failed to account for the fact that the area already had an ample supply of lunch-type places and the market was already fragmented. He was entering in a market where his competitors had already carved out their niches, several were already struggling, and a newcomer was in trouble before even opening the doors. The result for Sam was a quick business failure, primarily because he had failed to understand the competition in advance. Understanding the competition, and then differentiating ourselves from them, is one key to success. We must be prepared, because only rarely will we have no competition. "Hear, O sons, the instruction of a father, and give attention that you may gain understanding." (Proverbs 4:1 NASB)
Posted on: Thu, 13 Jun 2013 03:04:40 +0000
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