Competitors are part of being in business and it doesn’t have to be a bad thing. Having competitors in your industry indicates there are clients out there that need the services you provide. Competition can also help you to uplevel your services through education and research. But, it’s never a good feeling when you realize that your competitors are making more money than you. Even worse is that, chances are, it’s something you’re doing wrong. Consider the following reason why your competitors make more than you and what you can do about it.
Reason #1: You don’t know who you serve
As an industry expert, you know the value you provide to your clients. But when it comes to marketing those same services, it’s likely you’re targeting the wrong people. If you don’t know who your true ideal client is, you’ll never be able to reach them in a way that turns a profit.
Businesses that perform well take the time to market to their IDEAL client and you should do the same. Review past customers as well as potential customers who have a need for your products. Recognize what they like, the voice they associate with, and how you best serve their needs.
Reason #2: You aren’t willing to tell clients what they need (and then stick to it)
The client isn’t always right. While customer service is important, it may also mean that you’re going to have to tell your customers they’re wrong sometimes. As an expert in YOUR industry, you must show them what they need and why they need it. This is critical if you want your client to see the best results, plus, it’s likely they’ll blame you if it doesn’t work out.
Remember, your entire business goal should be to serve your clients in the best way possible, and that won’t work if you don’t provide the service that they actually need.
Reason #3: You are focused on “all the things” instead of what really matters
You can’t be everything to everyone. In order to succeed with your ideal client, you’re going to have to niche yourself and your business down to provide the best results. It’s a good idea to find your best product or service and focus solely on giving that to your potential clients.
One of the biggest fears that entrepreneurs have when they’re choosing a niche or cutting their business down to fit into a niche is that they won’t be able to reach everyone. This may seem like bad marketing, but it’s actually a good thing.
You can’t sell fishing lures to someone looking for a makeup palette.
The chances are that your competitors know exactly what their customers need and are showing them the true value of what they provide. Make sure that your products and services match the needs of the people you are selling to. If they’re not, adjust them so that they are.
Reason #4: You don’t recognize your value
Your services or products are valuable in their own right. You, as an expert in your space, are even more valuable to your customers. But, do they know that you’re the expert?
The competition isn’t afraid to point out that they’re the best, that they have the most experience, or that they’re offering something customers can’t live without. This poses them as an expert in the industry you’re operating in and is one of the reasons they might be seeing more profit than you.
If you had a chance to buy a pair of basketball shoes from Joe the 16-year-old working at the strip mall shoe store or from a Nike shoe designer who works with NBA athletes, who would you choose? If you want high-quality, well-fitting shoes, chances are you’d even pay more money to buy them from the designer.
You are an expert. You have value. And you need to make sure that your customers know that.
Reason #5: You just plain don’t charge enough
Everyone is looking for the best value for their money. More often than not, that doesn’t mean they’re looking for the cheapest product or service. If you’ve lowered your prices with the idea that you will get more sales, this may be the wrong way of thinking. People want value and sometimes that means they’ll pay more money because they know that they’re getting the best return for their investment.
Don’t undercharge to compete with the competition. You’ll end up underwater, burned up, and resenting your business. Instead, charge what your time, service, or product is worth and target those (ideal) clients that are ready to pay that price.
Change the Focus
It’s easy to focus on what’s everyone else is doing around you, but sometimes the best play is not to worry about whether your competitors make more than you. Instead, focus on who you serve and the best ways you can solve their problem. When you have a no-brainer offer that potential clients can’t wait to say yes to, you won’t have to worry about the competition again.
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