Sales Strategies: Why You Have No Competition

Someone in one of the industries I serve was concerned about the possibility of a competitor locating nearby. While I could understand the concern since both companies serve the same industry, selling essentially the same products, in my mind, they are not even close competitors. Why?

If you looked at these two companies, the one is very focused on selling parts, accessories, and gear, essentially a retail-like selling environment. Conversely, the other company focuses on building a network of dealers. Sure, these dealers buy and use the same products. But the dealers go for inventory buys. They’re not buying one of anything; they’re buying by the truckload. Dealers also expect a great deal of customer support in terms of sales force attention and incentive programs.

The scenario got me thinking. Do any of us really have any competition?

Let’s go back to the situation above. The company that was concerned about their competitor moving in must believe that both companies are completely identical and that their customers believe that, too. Wrong! Customers have a pigeonhole for every vendor they deal with. They are keenly aware of what differentiates you from other companies in your field, even if you are not so aware.

Another related point is that if you believe that you are on equal footing with all your competitors and view them as a threat, then you must also believe that all customers are alike, too. This is also not true. You may not want or may not be able to properly serve your competitor’s customers.

To stop worrying about competitors in your same industry and sell on what makes you and your company unique, ask yourself these questions:

• Forget About the Product – Yes, there are companies that sell completely unique or custom products which give them a market advantage. But in the majority of industries there are a lot of people selling the exact same products. What do you do differently? Greater convenience? Paperless transactions? You send them cakes on their birthdays? You have easily identifiable vehicles?
• Determine Your Ideal Customers and What Makes Them Unique – On the flip side, what are the distinguishing attributes of your customers versus your competitors? Do they all love baseball? Are they family-owned or publicly held? Are their staffs primarily made up of female or male workers? This may also trigger some ideas about what might work in the way of promotions for these folks.
• Remember That It’s All About Relationships - It is difficult to unseat an incumbent vendor. People buy from people they like. And if you’re worried that a competitor may move into the area and swipe your customers, you better start thinking about why it would be easy for them to do so. Obviously, you have some work to do in the relationship department.

Tags: marketing, Marketing Strategies, Sales Ideas, sales strategies, sales techniques