Competing Successfully With the Big Boys
How does a small hardware store stay in business when Home Depot moves into the neighborhood? Can a local pharmacy compete against Walgreen’s or Rite-Aid? Unfortunately, many small stores fail to stay in business when large chain stores arrive on the scene because they go about things incorrectly. But you don’t have to become a casualty when you face this type of competition if you can properly market your personal touch.
Don’t try to go head to head
You can quickly bankrupt your operation if you try to remake your business to be a direct competitor – slashing your prices, staying open longer hours and offering deep – discount sales probably won’t work because the numbers show you can’t compete in this way. Some small businesses have survived the onslaught of megastores by becoming boutique businesses, but this won’t work for type of store.
Instead of remaking yourself, distinguish yourself by selling service and not product. Emphasize your existing strengths – your personal attention to the customer and the expert advice you can offer.
Emphasize that shopping with you is a time-saver, something that just about everyone values today. You are more conveniently located and can get a customer out the door with the desired merchandise more quickly than the big guy can.
Know your customers
To keep your customers from heading out your door and across the street, you must get to know them and let them know you. Personal loyalty still goes a long way in retaining customers. While people today always seem to be in a hurry, there is still time for your staff to offer a “Hello” and “Can I help you?”
Learn the language that your customers speak. If you are in a Hispanic neighborhood, you and your staff should speak enough Spanish to serve these customers properly.
Your personal assistance to the customer is highly valued; in megastores it is often difficult to find anyone to answer a question and the answers may lack the professionalism and expertise that you can offer.
Build on your ties to the community. Sponsor local events (e.g., a Little League team) to remind residents of your business. Hire from within the neighborhood to establish loyalty and trust.
Hone your marketing strategy
While megastores are big and impersonal (and look the same whether they are in Peoria or Pittsburgh), you can give your store personality. Create a look that is inviting and distinctive.
Schedule in-store events, such as “Meet the Expert” (about whatever you’re selling) to attract customers.
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