Distinction Makes the Difference Part 1 of 2
Two things that tend to paralyze businesses and keep them from growing are lack of innovation and lack of distinction. To be successful in this highly competitive environment, it is necessary, that you as a business owner do two very important things: 1) Determine what it is that will distinguish you from your competition and focus on communicating that distinction. 2) Continue to be innovative with your product offerings and services.
Let's look first at distinction, and in the next issue, innovation. If you are in the lawn maintenance business for example, what have you done to take the "Me too" out of your business? What do you promote that makes you different from the rest? If the only thing you focus on is keeping your price less than your competition, then you might as well read the writing on the wall.
Customers today want value, and believe it or not, price and value are not the same. What do you offer a customer that makes your business stand apart from the rest? Identify and promote the value that this distinction brings to the client.
A friend of mine in South Texas promoted his lawn maintenance business by bringing along a bag of Fire Ant Killer to every job. As his crew mowed and edged, they were instructed to put the fire ant killer on any ant beds they found in the customer's yard. When a yard was treated, a note was placed on the invoice indicating where the ant bed was found and that it had been treated, followed by "No Charge." Ultimately the cost for this program was absorbed into his price and had very little impact on his margin. The PR he received however, was enormous.
When you separate yourself from the rest of the pack, you can then set your price based upon customer value, not the competition. Your margins will improve, your referrals will be greater, and your customer satisfaction will be higher.
