Be Different and Stand Out
January 25, 2010 by
Adam
Filed under
Business, Entrepreneurship
As an entrepreneur, how often have you tried simply tinkering with your price to see if you can gain just a little bit of advantage over your competitors? Truth be told, this is how we all tend to think at first reaction, as the almighty dollar always dictates a biased decision. But of course it does not. In any wildly cluttered marketplace, where price based marketing is prominent and is often shut out by the consumer, the key is differentiation. Don’t try and compete on price alone, but make sure your organization has something very distinctive to offer that others do not.
We are not trying to say that price is irrelevant and you will surely be disappointed if your pricing structure is badly skewed, but there comes a point when the consumer makes a decision based on other factors as well. If you have been able to differentiate your operation sufficiently, then in the ultimate scenario, price becomes irrelevant.
Are you aware of who your competitors are? Many an entrepreneur is not really able to answer that question, but this form of intelligence is not difficult to gather and you should always be aware of how others are seeking to reach your targets. If you do not know the “modus operandi” of your competitors, you will be badly placed should they choose to launch an initiative to try and steal your revenues. Setting yourself apart from the competition will invariably require you to reassess how you handle all your business processes, how you interact with your clients, and how you treat your relationships. You must have a hands on and conversational relationship with your clients and ensure that you are communicating what sets you apart.
If you just focus on price, how much of a difference are you likely to make? You could pare your expenses to the bone and imagine that you could make up what you’re losing though additional clientèle. Would your existing clients take a dim view of this? There is a danger that you could project yourself as budget quality, driving down the perceived value of your services. In reality, the pure profit involved when you tinker around with marginal price differences could be more than accounted for by a concerted effort to differentiate your service.
Overdeliver at everything that you do, to the point when people wonder just how you can manage to do this and still maintain a profit. This kind of creativity does not have to be the domain of those late-night infomercials on television, which promise you more and more in terms of savings and add-ons, rapidly creating the hook. Take a good look at what your competitors are doing and do it better, or provide distinct value when they are not.
How do you differentiate?
Adam Toren
This is so true. As a consumer, I do not always focus on price so I don’t expect my customers to either. I often shop at Publix grocery stores, whose products are a little more expensive - than Walmart where the store is so crowded and messy. It is the total package - price, quality, service, value, and the total shopping experience.
The brand and its story is as important as the price, that’s why generic and store-brand products are so much cheaper. Also, think about the success of organic, whole foods, fair trade and such. They’re definitely not competing on price, but on other appeals to the consumer.
Great post! Totally agree
just found your blog and i like it, especially the name of your blog!
Cheers
How does one differentiate? By having their products or business reflect who they are. That gets people turned on. There’s nothing sexier than authenticity - and that goes for a biz too, not just relationship - oh but wait, biz is about relationship.
This is all too true. Too many focus on the best deals these days and not enough on quality. Glad to see some people still emphasize the overall quality of the product.
Till then,
Jean
a little more expensive - than Walmart where the store is so crowded and messy. It is the total package - price, quality, service, value, and the total shopping experience.
In the virtual phone system market, there are not too many differences between providers when it comes to the product itself so you definitely have to figure out a way to differentiate your company and your service. I’d say that is the key and something we really focus on…customer service. If you can create raving fans, that goes a very very long way to making your company stand out.
Great article….I have a competor really trying to be the low price guy….but you put it really well…..projecting yourself as budget quality….I like that
I agree with being different and standing out. The difference that your company exudes should ultimately be for the better and for the satisfaction of the customer. Customers are very willing to pay for expensive products if they know that it has quality, durability and is useful.
Great post! It is important to stand out because that gives you the advantage above others in this society. If you establish a niche for yourself, people will want you as you are the best at what you do!
Tonight, just before I read your article, I did a guest presentation on solo-entrepreneurship for a friend who teaches a business class at a technical school (NAIT).
These were 3 important principles that I stressed for being successful as an entrepreneur:
1. Be First!
2. Be Daring!
3. Be Different!
Others have said bascially the same thing in other ways:
“What is your WOW factor?”
Or as Seth Godin says, “What is remarkable about your product? In other words, what remarks will people make about the product?”
It is not only your product that should be different and remarkable, however.
Your website and your promotional material should be different from your competitors. What is your WOW factor on your website? What is remarkable about it?
You mention looking at what your competitors are doing and doing it better. It is just as important to find out what your competitors are not doing - and then doing it!
Ernie J. Zelinski
Author of “How to Retire Happy, Wild, and Free”
(Over 110,000 copies sold and published in 9 languages)
http://www.how-to-retire-happy.com/
and “The Joy of Not Working”
(Over 225,000 copies sold and published in 17 languages)
http://www.retirement-cafe.com
This is a great article. Its really important for the businesses today to create something unique for their customers.
To stand out…Entrepreneurs must broaden their clarity on the product they are making or the market.No matter how late they are.They must strive for an excellence in their market.
Stand Out and To Be Different as you mentioned we have to be creative and need to be provide Full Package. Choice are very from person to person some want good quality, some requires affordable and good services, so we have to build powerful package to get success.
“Be Different and Stand Out”? Well, easier said than done! However I do agree that each business to be successful need a unique business proposition. This is the difference between success and failure…
I think Seth Godin said it best - Be remarkable. Be something that someone wants to make a remark about. It’s far more productive than battling over a few cents in price wars.
Thanks for the reminder.
I have a competor really trying to be the low price guy….but you put it really well…..projecting yourself as budget quality….I like that
I think that being different is one of the most important things someone can focus on. If your company isn’t different, it doesn’t matter how beautiful your website looks, it work succeed unless you do something different.
Its really important for the businesses today to create something unique for their customers.
What is remarkable about it?
Yes there is manything remarkable but for that needed honest eye to mark it.
For me it’s not the price sometimes it’s the uniqueness, quality and usefulness of a product or service that can really catch the attention of consumers.