Many new business owners believe the only way to compete in a mature industry is to offer a comparable product or service at a discounted rate. Not so. As a new business, you probably can’t afford to offer even a 5% discount to begin with, and the truth is you shouldn’t have to. Here are four ways your new business can succeed in a overcrowded market without having to lower prices.
- Provide Superior Quality If what you have to offer is of superior, top shelf quality, you shouldn’t have to cut prices just to persuade buyers to look in your direction. The right type of customer will find you. They will spend the money if they agree that your item or service is worth the price you’re asking.
- Offer More Than One Variation Why would a customer grab the pink umbrella off of a rack of black umbrellas? Well, because it’s pink. And it stands out. And it’s raining! Not everyone is going to want a black umbrella. Offering a variation of an item that everyone needs in an eye catching color that stands out from the crowd is one of the best strategies to use if want to succeed in an over saturated market.
- Offer A Unique Shopping Experience Whether the customer is offered a bottle of water or a complimentary glass of wine, they will always remember a positive shopping experience. This will not only increase your chances of gaining a repeat customer but they’ll be sure to bring you more business through word of mouth.
- Offer A Rewards Program – Customers love incentives, even if it doesn’t come in the form of an immediate discount. Consider offering a rewards or a points program for your buyers to sign up for as an alternative to having a 20% off sale. Once your customer accumulates a certain number of points, then they’ll be able to qualify for a discount at a later date. It encourages them to spend more, or shop more frequently, and by the time they come back to cash in their rewards your business will already begin to see profit.