Local Competitive Advantages

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Been mulling over my positioning and competitive advantages over non-local IM companies and here's what I came up with.

1. Being able to service clients face-to-face and building an intimate relationship.... I can take them out to lunch, or go golfing, etc.
2. They are supporting their local economy instead of sending their money to the other side of the country.
3. Because I'm taking a very limited number of clients, I can service their account much more effectively.
4. I can provide general marketing advice/consulting to my clients as well as internet marketing services. If they have a question, they can call me any time.

How is everyone else positioning themselves against non-local competitors?
#advantages #competitive #local
  • Profile picture of the author DaniMc
    Originally Posted by PaulintheSticks View Post

    Been mulling over my positioning and competitive advantages over non-local IM companies and here's what I came up with.

    1. Being able to service clients face-to-face and building an intimate relationship.... I can take them out to lunch, or go golfing, etc.
    2. They are supporting their local economy instead of sending their money to the other side of the country.
    3. Because I'm taking a very limited number of clients, I can service their account much more effectively.
    4. I can provide general marketing advice/consulting to my clients as well as internet marketing services. If they have a question, they can call me any time.

    How is everyone else positioning themselves against non-local competitors?
    That is a good start. Competitive advantage is a powerful weapon once you can distill it down to the real reasons people buy from you.

    You can build your competitive advantage by putting a few different pieces together. It is what I start with when coaching any business owner. It doesn't matter what type of business it is, offline marketers included.

    The first pieces are your Unique Selling Propositions (USP). Each business has several of these and it can be very difficult for you as a business owner to figure them all out. There are just things in your business that you are taking for granted.

    The second pieces are your Extra Value Propositions (EVP). These are ways in which you can bring extra value to the table compared to your competitors. This requires you to actually know who your local competitors are (including everyone who is competing in your space, out of town, local, large companies...everyone who is playing in your sandbox). Once you know your competitors, you figure out how to develop several EVP's over them.

    When you combine your USP's with your EVP's you end up with a competitive advantage (CA). Once you have a clear idea of your CA, you are in a very, very powerful position to know what types of customers you work best with and how you can serve them better than anyone else.

    Honestly, I feel this is the #1 way that a lot of offliners here miss their target. They are just another person selling websites or SEO. There is no clear differentiation. The biggest threat to ANY business is the commoditization of their business. Every single industry is fighting against becoming just another commodity.

    Anytime a new industry develops, the minute the innovator releases the model to the world, other people are attempting to turn it into a commodity. Look at SEO...a subject most here know about. It has turned into a commodity to be bought and sold like coal, corn, or sugar. Everyone is doing "about" the same thing in the eyes of the customer. They don't need YOU. They can get your product anywhere. Now if you are doing something different, you MUST put that in words right in front of your target market.

    This is where your CA reigns supreme in the marketplace. Every business has one. They just usually aren't aware of what it is and therefore are not able to communicate it clearly to their ideal customer.

    When working on your CA, what you came up with above is a first step. Much more needs to be done. These are simple ideas about your service. You must come up with the reasons that your ideal customer must have YOU and only YOU.

    For example, I see you have built a passive solar home. That is something that likely none of your competition has done. You have extremely specialized knowledge of the marketplace in which those materials are sold. Think of ways only YOU can use that knowledge to make money.

    For example: You know where people hang out who are interested in those sorts of things. You know where the passive solar "geeks" go for info. You know the conversations they are having. You can seriously help companies who are struggling to reach those consumers.

    Now, this may be a simple example, but it is the only thing I know about you. You must examine literally EVERY bit of specialized knowledge you have. Combine the WHOLE picture of who you are and how you can help. Then turn that into money.

    For example, I am willing to bet there are wealthy people who wish to build passive solar homes and would pay you a lot of money to come help them. In fact, a quick search for "passive solar consultant" turns up plenty of results. Not saying you should go this direction BUT - I am willing to bet again that you could help these people market their solar consulting businesses. You could do both. What if you used your marketing skills to become a well-paid solar consultant and at the same time you built systems that OTHER consultants could use to get customers? You could be quite wealthy from these two pursuits.

    Again, this is the only thing I know about you. There are many other aspects of who you are as a person that will lead to money. Many times, it is difficult to see the value of our own knowledge.

    Don't get hung up on it. Keep trying to sell. But while you are selling, always be looking for your perfect customer. I don't know you but I suspect that your perfect customer is NOT Fortune 500 companies. Your perfect customer is probably someone just like you. So, seek to figure out who YOU can best help and then show them your CA to show them that you can help them.
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  • Profile picture of the author AndrewCavanagh
    Often competitive advantage doesn't need to be explained it can simply be demonstrated.

    The biggest advantage you have is being able to build a personal one on one relationship with your clients.

    So if you're going out of your way to build those deep personal relationships with your clients (and prospects and referral sources) they'll always see you as the first person to talk to whenever they think of anything marketing or internet related.

    One other advantage you have as a small business owner is the ability to adapt and change VERY quickly (almost instantly or within whatever time it takes to train yourself.)

    In internet marketing that's a pretty big advantage.

    Kindest regards,
    Andrew Cavanagh
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  • Profile picture of the author bizgrower
    If you are dealing with local clients, you know the local market better than your non-local competitors.

    If you are talking about you versus a large non-local company, then you should stress that your life experience and marketing knowledge is far superior and more personal and thorough than the competitions account rep or "business coach" who is likely fresh out of college. And who has a bajillion and two accounts to serve.
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    • Profile picture of the author Darren Tan
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  • Profile picture of the author PaulintheSticks
    Thanks for all the great responses. Let me ask the question again. What are other local offliners doing to position themselves against non-local IM companies?
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    • Profile picture of the author sandalwood
      Originally Posted by PaulintheSticks View Post

      Thanks for all the great responses. Let me ask the question again. What are other local offliners doing to position themselves against non-local IM companies?
      Paul,

      We bribe them with naked women, booze and drugs. Just kidding. Being local is a BIG plus in our area. We open the conversation something like this, we are a local web design and marketing company...

      Local is underlined because it receives an emphasis. The locals like local. We are local.

      Tom
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  • Profile picture of the author DaniMc
    That's what I was trying to get at above. Someone else's positioning will not work for you. It must be totally personal. The people who do business with you will do it because they know, like, and trust you.

    My positioning would not help you one bit. It is completely wrapped up in who I am as a person. As such, it would be almost impossible for me to tell you my personal positioning without writing a biography.
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    • Profile picture of the author PaulintheSticks
      Dan, are you saying businesses don't share positioning? How many restaurants share price positioning? How many share quality?

      Originally Posted by Dan McCoy View Post

      That's what I was trying to get at above. Someone else's positioning will not work for you. It must be totally personal. The people who do business with you will do it because they know, like, and trust you.

      My positioning would not help you one bit. It is completely wrapped up in who I am as a person. As such, it would be almost impossible for me to tell you my personal positioning without writing a biography.
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      • Profile picture of the author DaniMc
        Originally Posted by PaulintheSticks View Post

        Dan, are you saying businesses don't share positioning? How many restaurants share price positioning? How many share quality?
        In my model of competitive advantage, these aspects you are using would be neither a USP, nor an EVP, and therefore not part of a competitive advantage.

        Sure, restaurants share pricing models sometimes. They may be in an area which supports a certain price range or their food is a certain quality.

        But positioning is so much more than that and competitive advantage is so much more than positioning.

        A restaurants real positioning usually encompasses much more than just price. There is also the location. There is also promotional positioning. And there is quality of food. Ambience. Service. Tradition. Hours. On and on and on.

        For example: This is the only Italian restaurant at Park & Lincoln who is open for lunch. We've been here 37 years and coming here with your business contacts is guaranteed to make for a great impression. Our private booths ensure your ability to conduct your conversations without fear of others hearing. Our staff will serve you without being intrusive. We also feature happy hour all weekend long to relax after those extra hours.

        Now, if an Italian restaurant moves in right next door and copies almost everything exactly, this first restaurant will have to make a clear case for why they are better.

        This same process works for plumbers and website firms.

        Consider now the plight of the SEO seller. Every Tom, Dick, and Harry is now a lead machine and is telling the business owner they can double their leads using SEO for $800 per month. Business owners have heard it so many times and have spent so much money they tend to hate the word SEO.

        There must be a differentiation. To succeed...we ALL must make ourselves completely unique and personal. Gone are the days when people want to deal with some giant conglomerate international company. Gone are the days when they just want some average one size fits all solution.

        Now, they want personal service from a PERSON. They want someone to give them something custom and personal for them. They want to know the guy they are paying. Technology has enabled a level of personal service like never before and people are expecting it from YOU. Not your account manager. Not your secretary. YOU.

        This is where the Competitive Advantage will reign supreme for you. You can use others to fulfill almost every aspect of your business but you cannot outsource YOURSELF.

        When you develop a Competitive Advantage statement, it is all encompassing. It makes clear the nuances of your positioning. It makes clear the extra value you bring to the table. It lets people know you and your product and the folks who like what they see will buy from you instead of Tom, Dick, and Harry.

        That is why I say someone else's positioning is not useful to you as an individual. Your only goal is to clearly communicate who YOU are as a person and how you run your business for the benefit of your customer.

        It is more authentic. More genuine. And you will never disappoint people when they find out you were pretending to be someone else.
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    • Profile picture of the author PaulintheSticks
      Originally Posted by Dan McCoy View Post

      It must be totally personal.
      Are you sure you didn't mean "ideally" instead of must?

      Ok we'll agree to disagree. IMO, there are tons of businesses that effectively share many aspects of their positioning. Are they going to be exactly alike? Of course not. There are no two businesses exactly alike.
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      • Profile picture of the author DABK
        Amazon.com has a competitive advantage in that it doesn't pay taxes (in most states) like other businesses it competes with.

        Domino's Pizza, it's there hot in 30 minutes or it's free, was positioning and competitive advantage... then it was just a positioning advantage, now I don't see them shouting 'there in 30 minutes or it's free' any more.

        True competitive advantage is hard to have. If you have it, you're making a killing (think Google... best darn algos).

        So, for most, positioning so as to create the illusion of competitive advantage is the way to go.

        USP is making a guarantee about something that has value to your clients... USP is your positioning.

        That said, when I had my appraising business, I had a competitive advantage over many simply by having a live person (odd phrase... I'm always imaging dead persons on the phone) during 9-5.

        It was not a true competitive advantage because everyone (almost) could have done it. Heck, when some other appraisers asked me how on earth can I charge 20-40% more then they did and get it, I told them that one of the main reasons was that I had a live person (dead persons talking amongst themselves on the phone bouncing through my skull) answer the phones between 9-5.

        Cost me $1,700 a month, if I remember correctly. At 250 an appraisal, that's almost 7 of them (or one appraiser working 7 days). At 350 an appraisal, that's almost 5 appraisals (or one appraiser working 5 days).

        If you were a one appraisal office, working 20 days a month, at $250 an appraisal, you were making $5,000. If you hired an assistant full-time, and paid minimum wage, you'd have had to part with some $1,300 (including FICA, etc.)

        That would have left you with $3,700 but, shortly, you'd be charging $350 per appraisal. Same scenario, now you're getting 350x20=$7,000. Less $1,300 for the assistant. You're left with $5,700.

        The way I do math, that gets you $700 more a month without you doing extra appraisals, for having to deal with an assistant. That's almost the same as you doing 3 appraisals extra (at the time, almost 3 days of extra work you got paid for, without doing appraisals).

        Still, they preferred to not do it. Not even larger (3-5 appraisers) offices. Nor did they bother to come up with another advantageous positioning move. Well, some figured they'd do something illegal, or lower their prices...

        The point of all this?

        Built-in competitive advantage is hard to come buy, and, often, hard to copy exactly.

        Other kinds of competitive advantages can, indeed, be copied. They might not, indeed, fit the personality of the business owner and, therefore, he might not be able to make them work... He/She'll start well, then things deteriorate as his/her heart is not into doing things that way.

        The smart thing would be to figure out what competitors who're doing better than you are doing and adapt to your style and likes.

        In my case, i.e., appraisers... a lot of one-appraiser shops could have partnered with other solo business owners and together hire an assistant... I only heard of one such case in the 10 years I was in that business.

        The guy who did it, in my opinion, was brilliant for doing it... Stupid for not raising his prices more than he did (he went from $250 to $275... Because his share of the pay that went to the assistant came to $25 a day... He did not want to be an expensive appraiser... People were not willing to pay $350, like he knew they paid my appraisers).
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        • Profile picture of the author boatree
          Paul,

          I get what you are trying to ask... Your probably wondering why people can't just list a few bullet points on the actual lines they use when selling a USP.

          Personally I haven't been in this particular industry for long enough to be able to give you any proper USP's but I will say that you probably should shy away from telling them that you are "a door step away with help" and things of that nature.

          By doing this, you are setting yourself up for major headaches and creating another job versus a freedom business.

          I suppose a genuine USP in this industry can be that you have gotten clients actual results and provide testimonials/references of happy customers.

          Without that, there is probably not much you can really differentiate yourself with!

          You would have to rely on sales ability and building strong rapport with the clients to set yourself apart.

          The main way to build strong rapport is to be genuinely interested in helping them and believing creating websites for them will benefit their business.

          I have already found myself caring about my prospects businesses, branding and reputations as if they were my own, and I know it comes across in my telephone conversations and emails to them. This is still very early days for me, but I know I am onto a winner because I am coming from a genuine place and doing business the right way.
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        • Profile picture of the author PaulintheSticks
          Originally Posted by DABK View Post

          I don't see them shouting 'there in 30 minutes or it's free' any more.
          That's because they were sued because of all the accidents their drivers had trying to get it there in 30 mins.
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