Business Chops Tip #18: Do You Understand Your Competition?
The two basic categories of competition are 1) direct and 2) indirect. Direct competitors are selling similar types of products to your same customers. Indirect competition goes after the same target customers’ attention (“mindshare”) and money.
Examples include alternative purchases like home construction upgrades (i.e. fountains, paving), vacations, and college tuition. Many custom retailers view their direct competitors as predictable and vulnerable nuisances as opposed to threats. And good sales people are expert at handling objections. Yet the indirect competitors can cause real competitive anxiety. As a team, have you analyzed the full range of your competition, both direct and indirect?
Author’s Note: Creative and technical professionals (from musicians and actors to designers and engineers) rely on their ³chops²: those skills and techniques that they use to be successful on the job. Stiernberg Consulting coined the term Business Chops to encompass those skills, experience, and tactics that you rely on to be more successful. Whether you are a dealer, manufacturer, distributor, rep, or design firm, this series includes tips and techniques for optimizing sales, profits, and growth of your Custom Retail business.