How to "Wal Mart Proof" your Business
Wal Mart will do two things to Squamish business. The strong and the well-strategized, will survive. Those competing strictly on price, will not.
Here are some strategies you can employ right now to combat “price based” competition.
Strategy 1: Ask your best customers why they do business with you and document it. In 2002, my family business had to stop manufacturing and start importing because of a glut of Chinese imports. We called 2000 (it took 3 months) of our customers and asked about our product lines, customer service and updated their contact information. Not only was it a great follow up tool that generated instant sales, we learned an amazing amount of useful information. Many retailers in Squamish fail to get enough information about their customers on a daily basis and use it to their advantage. There is nothing wrong with a retailer calling their customers to thank them for their business and ask them to return soon.
Strategy 2: Solidify your most valuable asset: your customer list. Rest assured Wal Mart doesn’t keep tabs on its’ customers. You can. If you don’t use a database or CRM software (Customer Relationship Management) you should. It reminds you to call your customers before they need product. If you have all of your customer information, buying habits and emails organized, then you can then start doing targeted marketing. As a retailer, you can parlay this information into a newsletter (paper or email) or run contests and promotions.
Strategy 3: Stop competing on price. What is it that your business does that Wal Mart doesn’t? Offer hard to find products and charge more. Focus on premium brands with higher mark ups. Sell more of what makes you the most money. Find a niche market. There has to be something that you can provide that they can’t.
Strategy 4: Get your business on the internet. After 4 years on the internet and operating a Squamish business, I generate 60% (I know this stat because of my CRM software) of my sales outside of the District through my web site. You might have to launch a spin off business that you run online. Maybe you start selling knowledge and expertise on a field you’ve been in for several years? Hire someone to do Search Engine Optimization.
Strategy 5: Go two levels deeper than your most ardent competitor would! Several times a year, I surf my competitors web sites and have friends ask for quotes. Occasionally, I even buy something from them. As a retailer, you can go into Wal Mart and see what all the hype is about. Examine how they display the merchandise you sell. Can you sell it better or display it so it’s easier to find? Mock the greeter all you want but can you employ a customer service strategy to make people feel MORE welcome at your store so they don’t need to go to Wal Mart?
If your business is in direct competition with Wal Mart, you will have to find a way to reduce the amount of products you sell that are in direct competition. You might need to hire an outside party to help you re-shape your business to survive. At the end of the day, blood, sweat and tears are going to keep you afloat.
Around the water cooler
Quest appoints Angela Heck as director of Public Relations
Solterra Development hired Katherine Light in November as their sales manager
Squamish Sustainability Corporation hired David Thompson as their new Business Lead
Here are some strategies you can employ right now to combat “price based” competition.
Strategy 1: Ask your best customers why they do business with you and document it. In 2002, my family business had to stop manufacturing and start importing because of a glut of Chinese imports. We called 2000 (it took 3 months) of our customers and asked about our product lines, customer service and updated their contact information. Not only was it a great follow up tool that generated instant sales, we learned an amazing amount of useful information. Many retailers in Squamish fail to get enough information about their customers on a daily basis and use it to their advantage. There is nothing wrong with a retailer calling their customers to thank them for their business and ask them to return soon.
Strategy 2: Solidify your most valuable asset: your customer list. Rest assured Wal Mart doesn’t keep tabs on its’ customers. You can. If you don’t use a database or CRM software (Customer Relationship Management) you should. It reminds you to call your customers before they need product. If you have all of your customer information, buying habits and emails organized, then you can then start doing targeted marketing. As a retailer, you can parlay this information into a newsletter (paper or email) or run contests and promotions.
Strategy 3: Stop competing on price. What is it that your business does that Wal Mart doesn’t? Offer hard to find products and charge more. Focus on premium brands with higher mark ups. Sell more of what makes you the most money. Find a niche market. There has to be something that you can provide that they can’t.
Strategy 4: Get your business on the internet. After 4 years on the internet and operating a Squamish business, I generate 60% (I know this stat because of my CRM software) of my sales outside of the District through my web site. You might have to launch a spin off business that you run online. Maybe you start selling knowledge and expertise on a field you’ve been in for several years? Hire someone to do Search Engine Optimization.
Strategy 5: Go two levels deeper than your most ardent competitor would! Several times a year, I surf my competitors web sites and have friends ask for quotes. Occasionally, I even buy something from them. As a retailer, you can go into Wal Mart and see what all the hype is about. Examine how they display the merchandise you sell. Can you sell it better or display it so it’s easier to find? Mock the greeter all you want but can you employ a customer service strategy to make people feel MORE welcome at your store so they don’t need to go to Wal Mart?
If your business is in direct competition with Wal Mart, you will have to find a way to reduce the amount of products you sell that are in direct competition. You might need to hire an outside party to help you re-shape your business to survive. At the end of the day, blood, sweat and tears are going to keep you afloat.
Around the water cooler
Quest appoints Angela Heck as director of Public Relations
Solterra Development hired Katherine Light in November as their sales manager
Squamish Sustainability Corporation hired David Thompson as their new Business Lead
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