In every industry, competition, at some point in time is inevitable. Ignoring new entries into your market place is a mistake; it’s like hiding in a dark closet and ignoring what is going on around you. Hoping things will remain the same is not a good action item.
The ideal thing to do is to prepare for such an eventuality before it becomes a reality. That requires a good communication system with your prospects and clients. A good communications system is one that is frequent, has value, and stresses the benefits you offer.
It’s very hard to displace an established vendor if the customer has trust in the vendor, is in constant communications with the vendor and receives the benefits and services that are expected.
That does not mean that by doing what you have always done you will continue to hold onto your customers. New innovations will happen in all businesses, and it’s important that you are the first to share those changes with your customer base and target market.
In all marketing efforts differentiation is the key to success. New entries into your market place will work on setting themselves apart from similar existing businesses. If you have a solid foundation, it will be difficult for you to be displaced.
One caution is differentiation on price; don’t get into a “price war”. New competitors may come into the market offering lower prices for similar products and services. This initial offer usually has as its purpose to get new customers and then increase the price at a later date. Don’t fall prey to this bait; if you try to match the lower price, then your customers will think that you have been overcharging.
If you work with the thought that you are facing competition and all your efforts are directed at client retention and target market penetration, you are on the right track. Never develop a business or marketing plan with the thought that you have no competition.
Today’s decision is tomorrow’s reality. Are you heading in the right direction?
Nick J. Petra CFP Make the right decision and call for a no charge consultation.