Competition is an area that most businesses are confronted
with one day or another.The best way to
combat new competition near your location is to be prepared for it by providing
the very best customer service from day one—and never taking a break from
it.Some business owners wait until a
new competitor comes to actually remember that building your business is
on-going. If you stop taking great care of your current customers and looking
for new customers they will find somewhere else to go. So what can you do to
stay on top of the new nearby competitors?
Don’t bad mouth the competitor—the best
thing you can say is “we are lucky to have such great clientele” and “there is enough
business for all of us” and “Competition is good for business, the customer wins!”If you bad mouth your competitor soon your
employees will too.It only causes
negative attitudes and does not make you look or sound successful.
Do create a promotion or program that highlights the most compelling differentiator
of your business. If your
business does something more specialized or better then make your customers aware of it.Toot your own horn about what you do best.
Don’t worry—most new businesses have a “honeymoon” period. You may see salesdecrease for a short time.People try new things, and the trick is to
get them back as YOUR loyal customers. The best way to do this
is to up the customer experience, the service and relationship aspects that
makes your business different than any competitor.
Don’t coupon or discount—somebusinesses
panic when a competitor comes in to their area and believe they should discount
or offer incentives. This is not the time to show that you don’t believe you are worth where
you have always been priced.Offer the
best service, quality products in a friendly inviting atmosphere and this is
incentive enough to have your regular customers come back.
your competitors.Find out
what they do that is different.Understand their pricing and business philosophy.This will help you understand what makes your
business different and better. Introduce yourself to the owner
and welcome him/her to the neighborhood.They aren’t your enemy, and if you look at them as bringing more
interested potential customers to the area—they are actually
helping your business too.
Recipes For Restaurateurs is a blog produced by Duke Marketing, LLC. which specializes in marketing for multi-unit and franchised restaurant organizations. Visit us online at:
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