Successfully compete against the Big Box stores and major competitors.

We  all understand that we cannot compete with he Big Box stores or  major service competitors on price. Their buying power gives them a competitive advantage on this issue. So, stop trying. Stop giving away your profit in a losing battle.

Take advantage of the competitive advantage small retail stores and local service providers have that the Big Box stores and major service competitors cannot compete with you on, customer service. More specifically customer relations.

Here is the deal. Most small business owners or their store managers or sales people know who their best customers are. In fact if your doing your job you know who all your customers are, by first name for many. You also know a little about their life styles family and habits, at least for your best customers.

Since your best customers already have a relationship with the store and the staff and have already acknowledged that they appreciate your product mix, the objective is to get as much of their spending dollars allocated to this spending season as possible.

I would specifically focus on marketing to your existing client base, spending even more special attention on your best customers. How about a sale just for customers, a private sale for the best, maybe off hours, maybe catered, maybe crazy, fun, interesting, personal and all about the relationship, not the price…. It will attract your best customers and then let your sales staff go to work on them and capture their spending budget for your store, without giving it away.

This is not the time to compete for new customers, as they will be attracted to the big box stores as they have not developed a relationship with you or your store, thus no real incentive to ship their. Clearly general advertising will bring some new customers in but in view of the likely reduced spending this season because of the economic downturn we are all experiencing, the high investment in ad dollars may be best saved and a smaller marketing budget directed at your most likely successes, your existing customers. In fact you could always develop a program to induce existing customers to bring a friend along ….

This strategy is  more effective and cost less thus yield more. No point in advertising massive discounts to all comers and thus give it away to your existing customers who would have shopped with you anyway, and not making it up with new business volume while trying to compete with the big boxes…. be smarter.

Focus on existing clients, have private sales that are moderate and keep them spending with personalized service. This works.

You will gross less but profit more and that’s a good thing. As long as you control your costs, like payroll and advertising this is an excellent strategy to develop.

That’s a winning strategy which can apply to service business as well.

Be smart, allot is at stake, change your approach, the times have changed.

I just returned from a brief shopping trip on Black Friday, anticipating mobs but a great 2 for1 suit sale at Gentlemen’s Warehouse got me to take my son there to improve his wardrobe at a reasonable price.

Was I ever disappointed. Despite the wonderful ad, it was a come on deal, just a few suits were included in the 2 for 1 deal and everything else was regular priced. I was quite annoyed as the ones they were offering were unacceptable and I felt like it was a bait and switch deal, call it what you want, it was an annoying experience. I will not go back again, They have lost a potential customer. How silly. Second EVERYTHING in the entire store was made in China…everything. I was uninterested, it was a huge turnoff.

If this is the competition I would love to own a mens clothing store as I would beat them into submission.