My Retail Biz

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 competitors store.
4. Try to market your prices at a better bargain than your competitors. If you cant, place your inventory in a more satisfactory arrangement. Sometimes it is all about the appearance of things.
5. Assess your competitors 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 isnt 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.