3 Reasons Why You Need Competition In Business 

3 Reasons Why You Need Competition In Business 

Written by Deepak Bhagat, In Business, Updated On
April 28th, 2024

Competition may fill you with dread if you’re a business owner. You want to get on with what you’re doing, and the last thing you want is for anyone else to be doing the same – or at least, very similar – thing, giving you more work to do and meaning you have to put in more effort to capture the attention of customers.

Yet, although this can be stressful, there are surprising reasons competitors are suitable for your business. When you have other companies you must compete against, it can bring in more customers and more profit than you might think. Read on to find out how to make the most of this idea.

3 Reasons Why You Need Competition In Business

  • Better Awareness

Although it will make it harder to be seen on an individual front, the fact is that the more businesses there are that sell what you sell, the more aware of that product or service the general public will be. This is especially true if one or more of those competitors is a large corporation with a big advertising budget. In other words, they are doing the hard part of your job for you – they are telling people why they need to buy whatever you sell.

After this, you need to ensure you are the one people come to. Do this by making your marketing more personal, perhaps by using Boomerang’s bulk SMS marketing tools, using social media to explain why you are the expert, and knowing who your specific target market is.

  • Better Supplier Prices

If you are the only one selling something, there is no incentive for a supplier to give you a reasonable price. They know you have nothing to negotiate with, and you’ll have to pay what they ask to run your business.

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However, if you have competition, you do have something to negotiate with; that’s because there won’t just be one company making or selling the product anymore. Just as you have competition, as soon as something becomes popular, other suppliers will take notice and start selling it, too.

Plus, if the supplier is manufacturing something, the more of it they need to make, the lower the production costs will be, and you can use this to get lower prices overall. Pass those prices onto your customers, and even if you don’t make as much profit per item, you’ll sell more of them, which is far more critical.

More Innovation

If you don’t have any competition, you may not be motivated to be too innovative about your company. You’ll have your products and services and stick to what you know works. There is no reason to look at ways to stand out or improve what you do, as you know you have a captive audience.

If you do have competition, the opposite is true. You’ll need to look at ways to differentiate yourself and be unique. You’ll need a USP, and you’ll have to constantly look for ways to improve and make sure ensureomers stick with you and that new customers want to use you. As you can see, competition is undoubtedly a positive thing.

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