Wednesday, 27 June 2012

Is it good having Competitors.

To SME Owners.

Wheather we like it or not we have competitors(opposition) what sounds better! It is good that we have to compete, but why-

        Competitors help educate the market,     
        Competitors come and go(don't be one of those that go!)
        Competitors help you to be on your game, always looking at new ways to service clients.
        Remember there are always Winners, Losers, and Marginal Competitors.

In most instances when a new competitor comes along, what do they do, yep, under cut price(with a view of increasing their margin overtime! right !)

So does this test your Relationship with your client, is your Service and Quality part of why the client deals with you! that word Loyilty comes into play, does it!

Very few b2b competitors can maintain under cutting prices for long periods, remember they will also lose clients.

I had a client, worked with them for three years, the sales director hating losing a client on price, so with a certain client we let him go to the oppostions, why, we knew the client would be back with us in the next three months, (on our new terms)
          The client was already getting a margin 2% below our benchmark, plus was a bad payer. 
I needed us to remember " that the business objective was to attract clients that are Profitable and who are Good Payers.(otherwise your cash flow and profits will be a problem)

If the competitor wanted to take on a problem account good luck to them.(makes you think)
                           Do you get the picture with this simple example.
Till next time may the Force be with you, I am your silent partner helping you work on your business.

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