Small businesses often have difficulties competing with larger businesses. Franchises and larger businesses can offer lower prices on the same items and make up for it by selling in larger volumes. How is a small business expected to compete when profit margins dictate that the price of products and services be higher than those of franchises?
While offering the same prices as bigger businesses may not be feasible, providing a rewards or loyalty program at your business may encourage repeat customers to use your product or services.
Not every consumer choice is dictated by money savings. Sometimes people go to a certain café because they like the coffee or a certain gym because they enjoy the atmosphere. By offering a personal experience to your customers, new customers are more likely to use your service. In addition, serving a community based clientele is more enjoyable than serving strangers.
A way to beat the bigger businesses is to offer specialized service. While it’s likely that a small business cannot compete with larger businesses offering the same service, having a business specialty can help attract new customers.
Unlike franchises, a small business can make changes to their business strategy overnight. This allows for a greater amount of experimentation. A small business owner is at liberty to offer special deals spontaneously or to change the format of his service at any time. Utilizing this flexibility to find a way to offer unique and specialized service can help your small business compete with larger businesses.