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Beating the Competition AND Growing Your Business

Beating the Competition and Building Your Business
How to Remain Competitive in Your Market Space – Supporting your Sales and Business Development Efforts for Improved Sales Performance

Only dead fish go with the flow….and that’s a fact of nature.

They hang in the water, until they putrefy, but in the meantime they’re pushed this way and that, swayed by the currents they have no control over, pushed to places they don’t want to be…..

I see too many businesses like this.

Those same businesses aren’t enjoying the trading conditions they imagined or the profits they forecast, nor the financial rewards they banked on.

If that’s your business, then let’s make today about reclaiming your rightful position, steering your business in a better direction and making sure you are in full and total control of what is happening inside your business and in your market.

That means you get your business to a position you are happy with, reaping the rewards you desire and benefits your imagined.

In order to do this, one of the first questions you need to answer is:

Why Should Your Prospects Buy From You?

Once you know that, you can begin to look at how to create a competitive and compelling sales pitch.

In any random sample of business people, I’m sure there are a vast selection of reasons why people start their business, why they do what they do, and why they selected their particular business types….

The bottom line is this….whilst all of those reasons are important, in many ways those reasons are a total luxury…since the primary aim for a business is to create maximum profit, or at least not to create a loss.

A business without profit is simply an expensive, stressful and thankless hobby.

So, today, I want to spend time sign posting ways you can maximise your profits, creating customers who are prepared to buy what you sell, and pay what you wish to charge.

This is especially valid if you are operating in a highly competitive market, if you are in a commodity based market, if you are in market sectors where prospects are spoilt for choice and if your market is a price driven market or even a discount based market.

The truth is – we are probably all in that position with some of our prospects since all markets will exhibit these characteristics to a greater or lesser degree. It’s the nature of markets and prospect bases.

You see, with such easy access to information, our prospects and customers can price compare in the matter of minutes, and whilst the prospect may never buy from the cheapest provider they find advertising on the internet, they can use that pricing information to attempt to secure a better rate from you and I.

Have you been in that situation?

And it’s a commercial decision isn’t it?

Do you price match and get the business or do you walk away?

Your decision may differ depending on what sort of month it’s been or where you are in your month or any other number of appropriate factors that impact on revenue, cash flow, or resources at any one time.

That’s business!

So, today let’s make a pledge to get out of The Commodity Trap, to get out of that profit draining situation, and start to make some real profits.

Say ‘no’ to staying in the trap that sees you competing on price alone.

Say ‘no’ to the trap that leaves you at the whim and the will of the discount seeking prospects and customers.

Say ‘no’ to the bargain-hunters.

Instead, let’s focus on making profit.

On building opportunities that distinguish you from your competitors, so you can better serve the needs of your customers, and thus allow you to charge a rate that you want, hence creating the profit that you need.

So…here we go…

First thing I want you to think about is the concept of competition….

Ask yourself – How competitive are you?

What most of my clients do at this stage is to reconfigure this question in their mind and start thinking about how competitive they are in terms of price.

They hear the question as: How price competitive are you?

That seems to be the universal understanding of competitiveness. It’s all about price.

The cheaper provider is the most competitive provider…digital TV, mobile phones, shopping baskets comparisons; insurance etc….the lowest cost is pushed as being the most favourable option.

The most favourable option, the most readily advertised and marketed option….not the best option. Just the cheapest option.

But that doesn’t really help you when you want to maximise your profits in a competitive environment.

Think about the question again:  How competitive are you?

Let me help your thinking here…

If you are in a competitive sector you have the following challenges when you are selling to prospects and customers:

You are:

  • One of many suppliers
  • Your proposition is very similar to that of your competitors – not always exactly the same, just similar
  • Your market is saturated and well served, mature and well established
  • Your buyers are educated buyers, they know about you, your competitors, what you all offer, your pricing
  • Your market is not prone to high levels of innovation.

Is that a fair description of your market?

In truth, it describes a lot of market that exist for many products and services.

It’s very tough to sell in these conditions.

Profits are low…and likely to decline because there is always some idiot in the market place who is selling at the cheapest price, or promises to beat any like quote

Profit creation opportunities will be rare – they will come along if someone wants a rush delivery, or something a bit different from the ordinary….but this is rare.

Loyalty is virtually non-existent…it’s just about price

You spend a lot of effort trying to get customers…customers will shop around, there is no certainty that they will buy from you consistently

Customers will wait for a special offer before they buy from you…your business planning is shot to pieces, your revenue is based on the market conditions and is not in your control

You’ll be permanently looking to cut costs…you have to, just to compete

You’ll constantly be fighting over the same prospects…and prospects and customers will know this…and your control in that situation will be virtually zero.

So, this is what you MUST remember

”Where there is no/very little distinction between what you offer to the prospects and what your competitors offer to the prospect, the prospect will be forced to base their buying decision on the only factor they can base their decision on…..and that is…the PRICE of what you are offering”

To get the rest of this article – hit the link here Only Dead Fish Go With the Flow

To discuss your competitive position or to find out about how to boost sales and profits, just use the contact details below

Carol

carol@mortonkyle.com

0779 002 1885

You can also check out the website www.mortonkyle.com

Plus you can hit the link here if you want to join us on the next Sales Improvement Workshop

 

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