Too many business owners are constantly looking over their shoulder in fear of the competition. Equally, many poor decisions are made based on a knee jerk reaction to a competitor.
What does 'stiff competition' really mean? It means you are in the right market space. It means you have the opportunity to grow.
Unfortunately, an all too common reaction to competition is to slash prices. Back in the 1980 two guys launched one of the first mountain bikes, Muddyfox. As a small manufacturer they were full of innovative ideas and enthusiasm, however, like all small companies, they were vulnerable to larger competitors.
And along came one of the biggest, Raleigh, with their version of the mountain bike which was launched just a few Pounds below a Muddyfox. It almost wiped them out.
So, did they cut a few Pounds off to compete? This was desperate times and Raleigh were stealing their market. No. Muddyfox trebled their price and shot up the ‘must have accessory ladder’ together with the Filofax and mobile phone. It was a sales move of pure genius that ensured their survival.
And another point on competition – don't be scared of launching into it. A small piece of a large pie is often greater than a niche market. All you need is great customer service and excellent selling skills. You can benchmark these skills online with SalesSkillsAudit.com if you are at all unsure.
