How to Compete with the Big Boys

Fred and Lyna,

I have a small camera shop in a small town that is slowly becoming a big town. I have a nice little business but recently several stores such as Walmart, Best Buy and a few others are opening up near me.  I am afraid I won't be able to compete with their prices and will soon be out of business.  Do you know any way I can compete and stay in business?

Fred: This is a growing concern amongst many small retailers.

Lyna: These big chains have encroached on many small towns and have run the small business owner out of town on many occasions.

Fred: This is true, but there are some who have weathered the storm and even some who have increased business in spite of the low prices.

Lyna: There are many things you can do to compete with the big boys.

Fred: I would go further than that and say, why compete?

Lyna: One way is to look for the weaknesses in the big stores.

Fred: What do they lack that you can offer?

Lyna:  One thing I can think of right away is service.

Fred: Service is key. For example, lets say you're in the market for a new digital camera. You could go on the internet and do a bunch of research to look for what you want, or you could go to a store such as yours, where you can ask questions and get advise from a knowledgeable person.

Lyna: Try getting that kind of knowledge from the minium wage high schooler that works at the big chains.

Fred: Besides great service, you can also offer FREE classes in photography.

Lyna: You can show your customers how to use the camera.

Fred: Spending time with the customer is key. I know I would pay a few extra dollars knowing I was familiar with the product I purchased.

Lyna:  And that I made the right choice.

Fred: Another way is to network with other small retailers in your community. Why not start a small association of retailers, if one doesn’t already exist?

Lyna.  I think America is yerning to go back to the old days when you could walk into a small store where the owner knows your name and provides excellent service.

Fred: Also, find out what brands the Big Boys don’t carry and look into carrying those brands for your customers.

Lyna: Then, run an ad or promotion that says you carry XYZ brand that no one else offers.

Fred: There are numerous things you can do to gain a competitive edge and you'll be surprised what you can do with just a little thought.

Lyna: We know a small retailer that sponsors an appreciation day for the local fire department once a year. You can do the same.

Fred: By doing this, you create sales people who will constantly talk about you and recommend you. You can't pay for that kind of promotion.

Lyna:  Copy success. Take a look at similar stores in other towns and see what they are doing to succeed.

Fred: You can still succeed in small business even if Walmart or whomever moves next door.

Lyna: Consider this an opportunity — not competition.