The low overhead, drop shipping, and economy of scale of Internet businesses make it impossible for local businesses to compete on price. So don’t even try.
Local businesses need to compete on value. Consumers want the lowest price available, but they are almost always willing to pay for services “included” in that price.
If you shop for a bicycle online, and you find one for $650, that same model might be available locally for $750. But the local purchase could include building the bicycle, fitting the bicycle to the rider, free maintenance for a year, rider safety training, a bicycling club membership, etc. Those extras are worth far more than $100, especially when they are combined with a helpful, knowledgeable sales staff.
If you feel you are losing business to the Internet, your business isn’t creating enough value for the customer. What services or special training can you attach to your products that add substantial value? Answer that question, and you can beat the Internet.
If you’re interested in learning more techniques to add value to your business, register for my upcoming Drive Your Brand workshop in Iowa City or check out my 1-on-1 brand consulting services.
Photo by graciolli
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