There are so many details to look after as a new business. It is an adaptive process. You need to adjust your operations based on any ne insight that you have gained about the market. While your competitors can be a threat to your business as they vie for capturing your customers, they can also be a great asset. How, you might be wondering.
To put it simply, your competitors will teach you about how you should position your business. They will also make you constantly rethink your business strategy to choose the best one. You can learn about what to do and, more importantly, what not to do from your competitors. Here are the top things that you should know about your competitors to stay ahead of the game:
Your competitor’s pricing strategy
To be able to determine a price point for selling your products, you need to know your competitor’s pricing strategy. Keeping track of this information will benefit you in many ways. You will know exactly how much the consumer is willing to pay for your product when compared to your competitors’ products. You will be able to set a price that is profitable yet as low as possible. Moreover, you may find out that you can implement a better pricing strategy by looking at what others are doing.
You could set your price higher without losing profitability. Your marketing strategy will also benefit from knowing your competitors’ prices. You will know which consumer segment your product falls under and how to best appeal to that demographic by positioning your product.
There is another pricing strategy that you have to monitor. You need to ensure that your vendors are selling your product at the minimum advertised price. A type of software for tracking minimum advertised pricing (MAP) policies among your vendors will allow you to control where your product stands when compared to other companies.
Their marketing strategies
The second most important thing for you to know is how your competitors are marketing their products. You need to know how they are branding themselves to appeal to customers. You will know what tactics to use and what you need to work on from observing their advertising. You should also monitor their online presence to see whether you are falling behind in terms of social media reach. Knowing which methods of advertising are failures can also save your money from spending on the same methods.
Their main weaknesses
If you know your competitor’s weaknesses, you will be able to exploit them and improve your product in your areas. If you know that customers are unhappy with the way a competing product looks, you can give yours a sleeker design. In this way, you can turn your competitor’s weakness into your strength. You can also observe how your competitor adapts to and works on their weaknesses.
Knowing your enemies is not just an old cliché. Knowing these things about your competitors will make your business more successful in the future. Consider it to be a part of your market research. Invest enough time into finding out about your competitor’s business strategies.