| In today's market a product, service, or business | | | | shop with a heart." |
| has to be distinctly different from its competitors | | | | There are many possibilities for differentiation. |
| to thrive. In fact, in most cases you need to | | | | However, it's important to remember four |
| differentiate to simply survive. It's not enough to | | | | important differentiation tips to ensure that you |
| offer good quality products, friendly service, and | | | | set your business apart in a way that will |
| fair prices. People already expect those things. It's | | | | stimulate the best bottom line results. |
| how you are truly different that will make your | | | | 1) You must differentiate with something that |
| business stand out from the rest. | | | | matters to your market. You might offer a |
| So how does a business differentiate itself? You | | | | special line of products, but if that line isn't of |
| probably already have things that you do or offer | | | | much interest to those in your target market, it |
| that set your business apart from similar | | | | will do little to stimulate business. |
| businesses. Perhaps you offer an unparalleled | | | | 2) You must differentiate with something not |
| guarantee or offer free delivery when your | | | | already assumed to be the case. People already |
| competitors don't. Or perhaps you stock a wider | | | | expect that your products are of good quality |
| range of products in a certain popular category, | | | | and that your staff delivers friendly service. Plus, |
| or offer a hot line of products for which you | | | | every other business claims the same thing, |
| have exclusivity in your area. These are the kinds | | | | whether deserved or not. The "expected" does |
| of things that can make your business stand out | | | | not differentiate your business. |
| from competitors. | | | | 3) Don't try to differentiate on price alone. Price is |
| If you don't already have something that truly | | | | very easy for competitors to match and you'll |
| sets you apart, you need to establish one or | | | | most likely just implement a discounting strategy |
| more points of differentiation. If possible, focus | | | | (and possibly a price war situation) that will leave |
| upon something about your business that no | | | | you earning far less profit than you should be. |
| direct competitor can claim. | | | | 4) It is always best to differentiate with |
| For example, mortgage companies offer similar | | | | something that truly makes your business unique. |
| types of services. However, one provider might | | | | If possible, go for area exclusivity of popular |
| specialize in first time homebuyers and offer | | | | products, offer specialized services not focused |
| special first-time buyer orientations to educate | | | | upon by competitors, or focus on something |
| them and help ease anxieties. They might also | | | | equally unique. |
| promote their extra knowledge about the various | | | | If you need help, ask your customers for |
| programs available for this special buying segment. | | | | suggestions. What products would they most like |
| Another mortgage group might specialize in | | | | to see you add or offer? What do they think you |
| investors and stress their many years of | | | | already do better or differently that might be a |
| combined expertise with investor loans and tout | | | | good point of differentiation? |
| special services targeted to the investor market. | | | | Once you've determined your points of |
| Two quilt shops might have similar overall | | | | differentiation, promote them in your marketing. |
| offerings, but one has an especially robust | | | | You will increase awareness of what makes your |
| specialty gift section that showcases a wide | | | | business unique, generate new business, and |
| variety of fun and unique gifts for quilters that | | | | boost your revenue and profits. |
| feature quilting themes. Another shop might | | | | © Karen Porter. This article may may be |
| organize local quilters to do several community | | | | freely published provided all content is left intact |
| quilts per year to donate to charitable causes. | | | | and the author bio/resource information below is |
| They then position themselves locally as the "quilt | | | | included in its entirety. |