Competing Against a Big Brand
As a small business it can be a struggle finding a way to keep up and compete with big brand stores that offer similar products. It is possible that a customer has walked out of your store empty handed because they found the same or similar product at a big box store for less money. What’s not understood is that small businesses do not intentionally increase prices for their customer; the store itself has to pay a higher cost for the merchandise they sell.
By putting their needs first, it shows that you care about the customers and the experiences they have at your store.
Typically smaller stores that are not backed by a large corporation will not purchase or need to purchase nearly as much inventory. A large store that is purchasing upwards of 100% more inventory than a small business is going to get products at a much cheaper cost. Since the cost of their product is cheaper they then have the ability to sell their products at a lower price point while still seeing a high ROI. This can be a struggle for small businesses that are trying to keep their stores open and offer the products that their customers want.
There’s not much you can do if you find yourself trying to compete with the markdown costs of a bigger store. What you could do as a small business that may set you apart, is to create an experience that larger stores lack. To say you are going to try to compete with the markdowns of Wal-Mart or Target is unrealistic. This is why you need to create an incentive for shoppers to spend their time and money in your business. There are some places of business that separate themselves by offering an in-store experience for customers. This can range from an area to relax and have coffee or try out sample products; you can make your customers feel like they belong to a community when they enter your store.
Get online! Use online advertising or a company website to extend your reach. Large brands are all over the web so you need a presence of some capacity as well. One thing that small businesses will always have is the love and support of a community which you cannot place a dollar amount on. Small businesses that make money in the community are ultimately giving back to the tax payers of that area. By putting their needs first, it shows that you care about the customers and the experiences they have at your store.