Basic Principles of How to Fight Competitors in Trade
Posted: Wed Jan 29, 2025 6:26 am
The most perfect and stable mechanism of retail trade is competition. In the context of the fight against competitors, businessmen use various methods to retain or entice a client, including improving the quality of service and revising the pricing policy. Consistency is good, but the unwillingness to work on yourself can end very badly. A sad example is the experience of an entrepreneur who told about his business fiasco:
"I am the owner of a shoe store located in the city center. We opened in 1995, we always had enough customers. Our daily revenue fluctuated between 40 and 50 thousand rubles, until two more shoe stores opened nearby: one, similar to mine, was located in the basement of a nearby house; the second is a discounter, attracting customers with low prices and regular discounts. This led to our daily revenue falling to 10-15 thousand and continues to decline. Some healthtrax corporate email list of our regular customers have already switched to competitors, whose range is constantly expanding. I am simply in despair and do not understand what can be done in this situation, how to fight competitors!"
Indeed, the situation is not simple, but anyone, even an experienced businessman, can find themselves in it. This happens for the following reasons:
the company does not have a trading strategy or it is not adapted to new conditions;
the company has poor analytics, which is unwilling to monitor the market situation and respond to it promptly;
the company has not implemented automation of the trading process;
the company's employees do not have sufficient sales experience;
commercial espionage is being conducted against the company;
the company has an unprofessional or conservative manager.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company's target audience
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153412
Next, we suggest that you familiarize yourself with the main principles of conducting competitive struggle, which allow you to significantly improve the company's position.
Analyze your main competitors
To effectively fight competitors, it is necessary to use proven methods based on knowledge of the enemy. There is no point in dumping if the neighboring store offers a similar product at a higher price, and your customers still leave. This means that customers are attracted by the service techniques of their "neighbors." How to fight competitors in the service sector? Where to start?
5 Basic Principles of How to Fight Competitors in Trade
Source: shutterstock.com
First of all, study your competitor and answer a number of questions:
How many competitors are around you?
What tools do your competitors use to sell?
Do your product niches match?
How are your products different from those sold by your competitors?
What pricing policy and discount system do competitors use?
Do competitors implement a warehouse accounting program for working with a customer base and mailings?
What is the list of services offered by the competitor?
What attracts customers to a competitor's store (location, design, fast service, responsiveness of employees, etc.)?
Once you have answered these questions, start comparing your business with your competitors. There are many methods for analyzing trade competitors, such as Porter, Kotler, SWOT analysis, and others. You can use any of them, as they are all based on comparing competitive qualities and are aimed at obtaining objective information that allows you to draw the right conclusions and make the necessary decisions.
"I am the owner of a shoe store located in the city center. We opened in 1995, we always had enough customers. Our daily revenue fluctuated between 40 and 50 thousand rubles, until two more shoe stores opened nearby: one, similar to mine, was located in the basement of a nearby house; the second is a discounter, attracting customers with low prices and regular discounts. This led to our daily revenue falling to 10-15 thousand and continues to decline. Some healthtrax corporate email list of our regular customers have already switched to competitors, whose range is constantly expanding. I am simply in despair and do not understand what can be done in this situation, how to fight competitors!"
Indeed, the situation is not simple, but anyone, even an experienced businessman, can find themselves in it. This happens for the following reasons:
the company does not have a trading strategy or it is not adapted to new conditions;
the company has poor analytics, which is unwilling to monitor the market situation and respond to it promptly;
the company has not implemented automation of the trading process;
the company's employees do not have sufficient sales experience;
commercial espionage is being conducted against the company;
the company has an unprofessional or conservative manager.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company's target audience
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153412
Next, we suggest that you familiarize yourself with the main principles of conducting competitive struggle, which allow you to significantly improve the company's position.
Analyze your main competitors
To effectively fight competitors, it is necessary to use proven methods based on knowledge of the enemy. There is no point in dumping if the neighboring store offers a similar product at a higher price, and your customers still leave. This means that customers are attracted by the service techniques of their "neighbors." How to fight competitors in the service sector? Where to start?
5 Basic Principles of How to Fight Competitors in Trade
Source: shutterstock.com
First of all, study your competitor and answer a number of questions:
How many competitors are around you?
What tools do your competitors use to sell?
Do your product niches match?
How are your products different from those sold by your competitors?
What pricing policy and discount system do competitors use?
Do competitors implement a warehouse accounting program for working with a customer base and mailings?
What is the list of services offered by the competitor?
What attracts customers to a competitor's store (location, design, fast service, responsiveness of employees, etc.)?
Once you have answered these questions, start comparing your business with your competitors. There are many methods for analyzing trade competitors, such as Porter, Kotler, SWOT analysis, and others. You can use any of them, as they are all based on comparing competitive qualities and are aimed at obtaining objective information that allows you to draw the right conclusions and make the necessary decisions.