05 Dec How To Gain Profit In Competitive Market?
It is no easy task to be in business in the current economic climate. All businesses are fighting to stay afloat and the competition is fierce even if the economic situation is improving. There are supermarket chains in nearly every town and all busy high streets are filled with restaurants and shops. There’s no doubt that some big businesses, such as supermarket chains, have disrupted the traditional retail market, but there are still consumers who prefer smaller convenience stores, because it is much simpler for them to purchase things.
So, can we compete in a highly competitive market? The answer should yes, we can. However, we should know that larger firms have the capability to provide services and products cheaper, due to the simple economy of scale effect. However, supermarket chains are available only in a few key, strategic areas in our town; so it is possible to outreach more localized consumers who don’t have plan to the supermarket. In this case, we could still satisfy some of the demands. The truth is, people often shop without being loyal and they simply choose the nearest store in their location.
This should be one trick on how to survive in the highly competitive market. Consumers know that dominant players can’t be everywhere and they need to find the nearest alternatives. People have become savvier about where and how they spend their money. A typical weekly shopping session for the average family in supermarket could last for about one hour. However, it could be much shorter in our convenience stores. They may spend less than 5 minutes to choose specific products in our store. So, it is important for us to appeal to consumers in the shortest time possible.
Savvy shoppers know that not all stores are honest and they could know whether a product is badly overpriced. In this case, it is a bad idea to offer some very cheap items, but over inflate other products in our store. Consumers know that we need to make profit, but they will appreciate the fact that we are not taking advantage of them. In this case, it could be really easy to miss out things that are really matter to our consumers. The best thing to do is to identify our company’s flaws and start to rectify them immediately. This should speak volume about how we see our businesses.
It is wake up time and we should do things properly to make money consistently. We have seen that even the biggest companies could go under during a financial recession. However, other businesses consistently expand and fill new voids left by recently collapsed businesses. Regardless of how competitive the local market is, there’s still an opportunity for us to make great profits.
Clearly, we need to properly advertise our business through leaflets, billboards and newspaper to let customers know about our existence. Advertising is simply a cost-effective method to boost our revenue