Episode 182 - Analyze Your Competition

One of the struggles and causes of anxiety for small businesses is the competition. It's either the reality that you'll lose deals to the competition, OR just the anxiety because you might (or when will you?) "I can't make any money in my area" "No one can sell for that price" One of the best ways to combat this is by getting in front of the knowledge. When you know your competition, you: Can get ahead of customers who shop Improve your products and services Be sure you are actually charging enough Know your strengths Steps To Competitive Analysis Identify Them All competition - This is anywhere your customer might buy a similar product. For example, Walmart and Bass Pro Shop might be on this list. Close competition - These are businesses that do close to what you do, but not the same. These might be screen print shops if you do embroidery. Direct competition - Companies that do almost exactly what you do, such as a company that sells DTG one-off shirts, when you offer the same thing. Make A List And Categorize Them Gather Information Info - The Basics All competition - What might someone buy there? How much is it? What is it like to shop there? Close competition - What do they offer? Why might someone shop there? Direct competition - This one is where you actually want to spend time. You should be looking deep. What do they sell? What prices do they advertise? Do they appear to focus on any niches? Is there anything they do that you can learn from? Read Reviews Info - Social Media For basically everything below, don't bother with the All Competition and try not to focus too much time on the Close Competition. You really want to put the effort into Direct Competition. Review all their social accounts Look for how they post Don't focus on # of followers, but posts that get interaction Info - Websites How do they look? on your desktop and on your phone What info do they show? How does it compare to yours? Is there anything you don't like? What can you learn about their size, age, pricing, products, niches Info - Shop Them This work can be done by yourself or someone you trust. Call them, what is that like? Ask for a quote Find out delivery times Look for 'hidden fees' (set up, art, etc) Get details on what they will or won't do (will they do the art? How much? Will they let you provide shirts? what brands do they sell?) Analyze Now it's time to step back and look: What are they GREAT at? What are they good at? What are they weak at? If you compare yourself, where can you shine? Look at their weaknesses and find where you can be stronger. Maybe they cannot deliver anything in less than 2 weeks, but you can do next day. Maybe they only offer really cheap shirts they stock, but you offer higher-end apparel. They might advertise low prices but have lots of hidden fees. They might appear to be a very diverse shop, but they really only focus on a couple of niches. Create Your Competitive Plan FIRST - did you determine that it's REAL competition? If so, then... This is where you can make it a point to show off your strengths that your competition doesn't have. Advertise these strengths on your website and social media Mention them in phone calls and meetings Do email blasts or local ads "Can deliver shirts in 2 days" "Top quality apparel that won't shrink after one wash" "High-end art services included in the price" "Full-color prints - print your dog, baby, or anything else on a shirt" Be sure to repeat this process often and don't be intimidated. There will always be competition, but smart business people can always find a way to stand out. If you are ahead of them, you can always come out successful.