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FIB - Scams 101 - Ye Olde Archives
Posted By: Sandi Bowman In Response To: Need help finding niche computer sales strategy....... (BizNewbie)
Thursday, 19 January 2006, at 1:02 a.m.
> Hi,
> I am in the process of planning a computer sales business, for people who
> have less-than-ideal credit. It involves payment plans tailored to
> individual needs.
> I have started on a business plan, more specifically,a competitive
> analysis, and have listed a number of key competitive avantages I would
> have over other similar businesses. However there is a relatively new
> national franchise business that does exactly what I do, and even has all
> the competitive "niches" (e.g. free in-home set-up, warranty
> work, etc.) that I had planned for, plus they will beat any price.
> On the positive side, competition does not scare me since this signals a
> ready market for the services.It is obvious that they will command a big
> market segment. How can I compete against them?
> What other niche strategies can I use to position my self away from their
> services?
> Any ideas will be appreciated!
> Thanks,
> BizNewbie
First, congrats on your new venture and for taking the time to research, think, and plan.
Your best solution to the seeming dilemma is to never compete on price. The little guy can't win with that tactic. Instead, think about what you can offer the customer that the big guy can't such as friendly, helpful, customer service, quicker turn around time or service response time, personalized service with a capital P...put your heart in it. Big boys tend to be rather cold and impersonal...you don't have to be. Whatever USP (unique selling position) you can come up with, use it...but don't ever think you have to compete on price...that's for the insecure newbies and those who have nothing better to offer. I'm sure that's not going to be you. Stay competitive in your pricing and let it go at that but never get into a price war...it's a lose-lose scenario.
Check around and find out if there's some area that the big boy doesn't offer and that people want, then fill it. Look for places where they're weak then exploit that to your advantage.
Make SURE any employees you hire have an absolutely great customer service attitude and willingness to go the extra mile if/when you hire people. Oftentimes it is the attention to detail that wins the hearts of customers, so emphasize that.
Best of luck!
Sandi Bowman
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