What is Your Competitive Advantage?

Why do your customers buy from you?  Is it because you offer the lowest price, best quality, fastest service, best guarantee or is it something else?

I hope that you are not still trying to answer that question.  You and everyone in your organization should know why your customers buy from you and I don’t mean, “know anecdotally”, I mean really know why quantitatively.

Quickly write down on a piece of paper who among your competitive set is considered by the customer to be the best?   To sell for the lowest price?   To offer the best value?   To have the best products?  To have the best service? To have the best location?  To have the best staff?

Where do you rank among your peer group for each of these questions? How do you know?

Which categories do you want to rank #1?

Decide what you want your competitive advantage to be.  Figure out what needs to be done to get there and build an organization, cost structure, selling price and profit margin to support that.

You can’t be the fastest service, highest quality and lowest price for long.  It is usually not sustainable because it should not be a profitable position.

You cannot be the mediocre service and quality company with high prices organization for long, customers will quickly figure it out and go to a better alternative, your competition.

So where do you fit in the competitive landscape today and where do you want to be?

To really know where you are you need to ask the customer and not just your, but the customers that buy your products and services and those that buy your competitors’ as well.

Armed with real information you can now decide where you are and if where you want to get to is realistic.

One last point, you can’t be all things to all people, you need to choose which position to occupy in the mind of the consumer and then do the things that are required to occupy that niche.

Then market yourself in that position.

Choose wisely, build accordingly and communicate loudly while delivering continuously…growing profitably!

What is your competitive advantage?

 

[themecolor]Dave Baney is the founder and CEO of 55 Questions, LLC.  We work with successful top executives with a driving ambition to crush their competition.  We help CEOs and Entrepreneurs improve alignment, communication and accountability throughout their organization[/themecolor]. www.55Questions.com

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