3 Reasons Why You Need Competition In Business
If you’re a business owner, the idea of competition may well fill you with dread. You just 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 actually a surprising number of reasons why competitors are good for your business. When you have other businesses you have to 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 who 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 about why they need to buy whatever it is you sell.
What you need to do after this is 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, by using social media to offer reasons why you are the expert, and by 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 good price. They know you don’t have anything to negotiate with, and you’ll have to pay what they ask in order to run your business.
If, however, 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 actually manufacturing something, the more of it they need to make, the lower the production costs will be, and you can use this as a way 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, and that is far more important.
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 you’ll stick to what you know works. There is no reason for you to look at ways to stand out or to 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 be looking for ways to improve and make sure your customers stick with you, and that new customers want to use you. As you can see, in this regard, competition is certainly a positive thing.
