Do Your Competitors Fear You?

Tom Egelhoff

Fear gives one business a distinct advantage over another. Fear creates urgency in your competitor that can create mistakes and increase your advantage. It’s an important part of business to always keep competitors thinking about you rather than their own businesses. Here are some tips to help you do that.

Create a Fearful Sales Force

Companies that sell more always rise to the top. But while that’s not easy it’s not impossible either. Start tracking your sales force immediately. What is their closing ratio — their average sale? There are no “cookie cutter” sales techniques that work for everyone but if you can help each person find the method that works for them then sales will increase. Train them how to track their performance and learn from each sale and become a fearful, formidable force.

Show Value Not Low Price

If you are already the lowest price on a product or service then by all means advertise it as long as you have priced it to be profitable. Don’t lower prices to buy the business. That’s a recipe for business death.

Emphasize value in your marketing and advertising messages. The larger the value of a product or service the less cost becomes a deciding issue. The price of any item is only important to the viable customer. And the price only becomes fair if the value either equals or exceeds the cost asked.

Is It Time To Expand?

While the economy has not fully recovered it might be the right time to think about expansion and get a jump on competitors. Can you add new products or services to the mix? Can you do more with less? Are there any areas you can automate? Can you retire some short-term debt? Become a student of your business. Look at every aspect. What can you be doing better?

Find Outside Help

In a previous life I sold furniture. Our company partnered with a lot of interior designers to bring us additional business when they got jobs. We also partnered with many interior remodelers and paint companies as well.

Develop as many relationships as possible with non-competing businesses.

Keep It Inside Keep It Outside

There are thing you should be doing in-house and other things that can be done out of house. You may be able to outsource your accounting, billing and bookkeeping for less then doing it in house.

A delivery service might be less expensive than maintaining a fleet of delivery vehicles.

Some Final Thoughts

Being the very best company you can be will set you apart from half your competitors right from the start. Most are too busy running their businesses to worry about how good a job they are doing with customers.

Sales and training of employees is usually at the bottom of the “to-do” list rather than the top. What produces income? Sales? Who produces that income? Sales people. Are you starting to connect the dots?    

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