Why is John (or Mary’s) business doing better than mine?
If you are asking this question,
hold it. Do not rush into bringing the curtains down on your little enterprise.
There are several things you need to do when you find yourself in a situation where
you ask this question. We are happy, here, to share some of the courses of
action you could take.
First, you need to confirm with
John or Mary that their business is actually
doing better than yours. Are you friends with Mary/John? If so, how close are
you? If you are friends, and close, John/Mary will likely confide in you as to
how their business is really doing. If you are not close, they may not. Still,
there are other areas you can look at to help you understand your business
relative to that of John/Mary.
Let us assume John or Mary’s
business is, indeed, outperforming yours. One basic question you could ask is
whether or not your little enterprise is in the same location as John or
Mary’s. If the two businesses are neighbours physically, then you should be
receiving the same number of visitors as Mary/John’s business. If not, why not?
You mean you keep seeing endless streams of buyers into John/Mary’s shop or office
while your own place yawns? That is naturally terrible, but hey, maybe John/Mary
has products you do not have? Perhaps they have products that move faster in
that particular place. Have you made a comparison?
If the problem is the products
you sell, then do introduce the kind sold by Mary of John. It is not illegal,
but hopefully, you do not create an enemy. If Mary/John and yourself are on
talking terms, do talk candidly with them about how your business is doing and
how you have decided to also bring in the products you have seen move relatively
fast in their business. They may not like it because it is increased competition
for them, but being open to them about it will ease or prevent tension.
What if John/Mary and yourself
sell exactly the same products? Well, well, we have to look elsewhere, then. Perhaps
the arrangement of things in your shop or office does not encourage visits. See
how the layout in your business differs from the layout in John/Mary’s. Try to
understand how your layout could be a discouragement. It is probably that the
customers in John’s business have a better view of products or have better
access to the products or office assistants. Remember, customers do not like to
struggle to view or feel the products. Is that not one reason why someone
decided to introduce self-service shops? (Most non-food products can be touched
by customers without any real harm resulting.) Customers also do not like to
struggle to be in full view of the business assistants. They want to be visible
in every square inch of your business. They did not come to be invisible, or get
hidden away by the beautiful mannequins or in-office billboards.
Next, have you thought about the
painting of the internal and external walls? Business place colours do matter. But then, how does one know the right colours
to use? Well, there is John/Mary there. Have they used very bright colours? If
yes, then try going bright. If they used light colours, do go light. Remember
this, though: do not use the exact same colours John/Mary has used. That would
certainly not make John or Mary smile. It would be seen as an attempt to make
customers think the two shops/offices are one. You can try to make customers
think the shops are not different, but you cannot try to make them think the
two shops/businesses are one and the same. It could amount to an unfair
practice. Copy the style, but not the deed. And only change colours when you
are sure it is the colours at work.
Another consideration to make is
that Mary or John’s superiority in business performance could be a result of better
customer service when potential buyers call. If possible, study the way
customers are treated in John/Mary’s business. Are you doing the same or
better? That could be where the secret lies.
What about the pricing? Could you
be charging significantly more for the same type, quality and quantity of goods
or services? If so, simply drop the price to John/Mary’s level – if you can
still make a decent profit. This issue of price can be tricky, though. You
cannot afford to drop the price too low or there will be perception of low
quality. That has happened a lot of times.
There are many other possible
explanations of why John/Mary’s business is doing better than yours. Your
business may be practically next to Mary/John’s, for example, but if theirs has
been there longer, then of course they may have established themselves better
with the clients. If that seems the reason, relax and put in your best. It is
just a matter of time before your numbers pick up, too. Quite often, buyers
want to start feeling at home with sellers before they can come knocking. Going
further, do not forget that in this information age, John/Mary may be
advertising their business and products online or on a local radio or TV station.
You could the same, could you not, all things being equal?
Finally, “little” things like packing
customer purchases or simply thanking clients for their visit or phone call
could be the difference between your business and that of Mary/John, in the
long run.
Our concluding message is that usually,
when two similar businesses are in the same locality but one is doing a lot
better, the answer also does not lie far.
