Competition - The catalyst of innovation

Unless you have developed a brand new business sector, product, or service, you will likely have some level of competition. Whether you are competing for a share of the market or your customer's attention, there will always be someone else trying to make sure they are one step ahead.

Nothing breeds innovation like competition. It forces you to find better ways to do the things you already do. In turn, the customer receives a much more refined buying experience. Innovation increases convenience, value, and features. Think about the first cell phone manufacture that added a calculator to their device, Brilliant! I would be willing to wager it was partly because their competition did not offer this on their current model.

It took me years not to constantly view competition in a negative light. Business can be challenging enough without an outside source attempting to sway potential customers away from your business right? I had to choose to consciously shift my perspective on competition. The biggest driving factor in doing so was watching friends also go into business for themselves, the desire for them to also succeed and enjoy the benefits of business ownership, far outweighed the concern of losing possible customers. Instead, we started focusing on building customer relationships that could be mutual between multiple companies.

Customers are regular people, not just a data statistic that converts to dollars. We all have a certain level of values and morals that we reference everything to, whether we realize it or not. Have you ever felt uncomfortable after watching a commercial about a political smear campaign during a local election? Maybe a business advertisement that directly cuts down their competition? While this may not be the same level of opposition in regards to competition within your company, the same "vibe" may be felt by your customers if you are not careful with how you respond to certain questions or comments.

Try to look at it as "I have friends that are in the same business as I am" not as direct competition. Even in retail, we worked hard to build off each other and focus on one specific thing above all, "take care of your customers, and they will remain your customers". For instance, we ran out of a specific item and our new order would not be in until the next day. The customer was headed out of town and needed the item before they left. Knowing I had an acquaintance one town over that stocked the same item, it was an easy phone call to make. After verifying stock and price, we relayed the information to the customer along with directions to their store. The customer was very appreciative for us going the extra mile to ensure their needs were met, which locked in a customer relationship for years to come, all thanks to "competition".

Customers will remember who went the extra mile for them, so place more value on the personal care of your customer rather than undercutting prices. There is always someone out there willing to do it for less, preserve your value through service. Especially in retail, most companies of similar industries have similar, or at times, the same suppliers as their competition. So if both companies have the same brands, of the same products, you have to differentiate yourself one way or another. Would you rather consistently forgo profit margins to retain customers? Or would you rather focus your emphasis on customer service, product knowledge, and post-sale support as an added value to the same transaction? You will always have to stay relevant on pricing, but don't fret when the competition's price might be a little less. Show them you are worth the extra cost.

Your customers will sense the opinions you have about your competition, stay on that high road, your customers will follow.