Who Is Your Real Competition? (The Answer May Surprise
You)
By Tom Egelhoff
 Competitors! We hate 'em.
They are the primary reason your business isn't doing better.
Right? They cut prices, steal customers, say terrible things
about you and your business, keep you up at night, cause stress
in your life and lie in their advertising.
You blame every business failure and set-back on them. But,
are they the real cause of your problems?
Who Are Your Real Competitors?
My inspiration for this article was a recent conversation
I had with a local business owner. I was asking him about the
fiercely competitive nature of his business and how he handled
it. He said, "My toughest competitor is...time and materials.
Those two things affect my business more than any competitor."
I had never really thought of internal forces as a "competitor."
As he continued his explanation I could see that it made perfect
sense. Internal forces within a business can be just as harmful
as a strong outside competitor. For example, poor customer service
drives your customers to your competitor.
New Definition
So, I now have a new definition of the term "competitor,"
and so should you. My new definition of a competitor is any "entity"
that causes a reduction in profits or negatively affects the
reputation of the company. Internal or external.
So, under this new definition, who is your real competitor?...it
just might be you.
Where should you concentrate your efforts?
With this new definition in mind you must look at your business
from a whole new perspective. There is a real positive in this
new definition. You have some control over what happens inside
your company. You have very little control, if any, over what
your competitor does. Concentrate your initial efforts within
the confines of your company.
Positive policies you implement within your company can often
overcome anything an outside competitor can throw at you. The
first place to start is with your customers.
I can't define customer service, but I know it
when I get it.
Countless reams of paper have been used to document the benefits
of good customer service. I have yet to talk to a business owner
who didn't think their business delivered anything less than
excellent customer service.
Here are two observations of customer service, or lack of
it, from businesses I frequent.
I use the drive-up facilities of two banks here in Bozeman,
Montana. At one bank, no matter which teller I get, they always
call me by name regardless of the size of the transaction. At
the other bank, no matter which teller I get, they never
call me by name regardless of the size of the transaction. Try
and guess which bank makes me feel better after the transaction.
Here is one of my real pet peeves...grocery stores. I hate
to issue an "across the board" condemnation of one
segment of business, but this happens everywhere.
As most of you, I spend what I feel is a fair amount of my
hard earned money at the grocery store. When it's my turn the
checker always says either, "Hello", "How are
you today?" or some other similar greeting. That's great,
that's what they should do.
However, once they've finished scanning my selections and
given me the total, for all intents and purposes, their job is
done. I suddenly become a non-entity. While I'm filling out my
check, they totally ignore me and start talking to the bag person
or the next cashier or any other employee within ear shot about
their week-end or someones party.
The time for idle chit-chat with others is when there are
no customers in line. Show me any other business where this activity
would be tolerated. Every customer should always receive undivided
attention throughout the entire transaction regardless of the
industry.
Rarely do they call me by name even though they have a check
with my name on it. A simple thing like calling people by name,
as soon as you know it, should be a mandatory activity for every
business.
Other internal competitors of your business.
I talk with a great number of businesses each month. I see
the good, the bad and the really ugly. I try to look at each
business as a customer would. Here are some of the things I look
for:
- Successful businesses aren't always neat, but they are usually
clean. Particularly the areas that customers see.
- The employees are usually dressed better than the customers.
That doesn't mean coats and ties but they take pride in their
work and show it with a clean professional appearance.
- Business cards, stationary, brochures and invoices all project
a positive business image. They don't have to be printed on expensive
paper, but they are professional in design and information.
- They answer the phone in a professional manner. Everyone
who answers the phone is qualified and trained to answer whatever
questions the caller may have. No one likes to call and repeat
the question over and over again as they go from person to person
looking for help.
- According to Murphy's Law, customers with complaints will
always show up when management is gone. Employees are empowered
to resolve customer complaints without management intervention.
The last word on internal competition
Every business spends time evaluating their competition. In
addition to your external competitors, make it a daily practice
to look at your internal competitors.
Keep in mind, the goal of external competitors is to attract
your customers away from your business. While the result of internal
competition is to drive your customers away from your business.
The less control you have over your internal competitors,
the more your external competitors like it. Start being competitive
internally and make your external competition lose sleep for
a change.
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This article may be reproduced for your non-profit
group or organization provided it is not altered in any way and
the following is attached:
©1998 - 2004 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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