Business Competition Creates Growth

The economy has increased business competition. A number of businesses realize that their relationship with their customers has to step up and since most clients are always seeking a better deal the owner finds himself having to negotiate his profit and still satisfy the buyer.

Whether you’re opening a new business or you’re expanding studying your competition helps you in pricing your products or services. You need to know what they are selling and what market they target.

Where your business “fits”?

• Price
• Quality
• Service

Fill out a chart similar to this one in order to make a comparison. Fill out a chart for each product you offer.

Competition/Pricing Worksheet

My product

My price

Competitor's Products

Features

Price

After filling out one chart for each product or service answer these basic questions.

1. Is my competition trying to sell to the same target market that I am?
   Mark an x on the income line below with their number from the Competition/Pricing Worksheet

   ____________________________________________________________

   Low

   Middle

   High

2. Why do think your potential customers buy from the other business? Think about price, quality, service, packaging, availability, and so on.
3. How are my products different? Why should someone buy from me?

Why is this important?

You learn why your product is different from similar products and services.

You also find out a very important question.

Why should this market buy from me instead of my my business competition?

Are they medium on price?

High on quality?

Have the best products?

Yes, starting a business takes a lot of effort, however, this effort is a benefit because it saves headaches in the future.

You may wonder, “What is marketing?“ These are some of the steps because marketing is the process or technique of promoting, selling and distributing a product or service.

Observing Their Marketing Techniques

Directions: Choose a competition business to study. Over the next few days, research what they do to promote and sell their products. Answer the following questions.

1. What company are you observing and why?
2. What is their target market?
3. What are their sales techniques?
4. What images do their techniques portray?
5. What do they offer that make them unique?
6. Why would customers choose them over their competition?

Taking these steps will help you determine if your business is the right one for you. And if it is, knowing the answers to these questions will help in your business competition and bring an improvement to your business.