Team Massive Result’s Thursday’s Thoughts
More Important Than Important
I wrote recently about ever increasing competition. Competition that comes at us from all directions. Please see Here,
This ever-increasing trend of intense competition makes the concept of a niche even more important than it ever was.
My definition of a niche is “a place where there is no price competition”, and whenever I mention it I am met with guffaws of disbelief. So many businesses feel that they are so besieged by competitors’ prices that they cannot conceive how they might ever find themselves in a place of no price competition.
Well the good news is it can be done.
Let me try to explain the situation as I see it. If two people or two businesses sell exactly the same thing, in exactly the same way they can only compete for the customers’ business on price.
The problem with that is that whoever wins, loses. Because ultimately that position is not sustainable. If you find yourself in a race to the bottom, either you will end up supplying at a rate that is not economically viable for you, or someone else will undercut you and you will lose the business anyway. It is not a sustainable position in the long term.
The UK no longer mass-produces motor cars because it couldn’t win the race to ever lower unit prices when faced with much lower wage costs from abroad and survive.
As entrepreneurs we have to be better than to try to compete in a race to the bottom, which we will ultimately lose.
The way all businesses can create a niche is through differentiation.
In real estate the mantra is location, location, location. In business it is differentiation, differentiation, differentiation.
As Jeffrey Gitomer once said “Differentiate with value, or die with price.”
In the last masterclass I said that the way to create a niche is through “unique selling point(s)” backed by a guarantee.
What is it that is so special about how you have designed and deliver your value proposition that is going to cause the customer to say, “I would be crazy to go anywhere other than..(insert the name of your business here)”?
Can it be done? Of course it can.
Is it easy? Well it isn’t rocket science but if it were that easy everyone would be doing it, wouldn’t they?
If you want an example and you live anywhere in the North-East you only have to look at Bettys Tea Rooms.
At all of their locations customers will queue around the block on a weekend. There are plenty of other tearooms and eateries and almost all of them are cheaper but they don’t have queues. Even during the darkest days of the last few years Bettys was busy.
Why? Well they have crafted and perfected their niche.
If you want to know more about moving to a place of no price competition why not come along to our next Masterclass on October 7th. I guarantee that you will come away with more value than you came with, in fact you’d be crazy not to.
September 1st saw our first of our Autumn season of Business Growth Masterclasses, with over 50 attendees we are pleased to announce the next Free Masterclass on 7th October 2014. To enroll on the “Massive Results Masterclass” to see how to engineer the Massive Results you want and to learn how to radically grow your profits click here.
Not only is it free but I guarantee you will come away with more ideas than you arrived with any one of which is capable of transforming your business.
To read more ‘Thursdays Thoughts’ by Ian Kinnery and many other blogs please visit our website