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Today's Thought - Get More Results By Reframing Your Competitive Perspective
A friend of mine owns a local restaurant. His menu and moderate
prices attract a local clientele on a regular basis. The food is
quite good and the menu is imaginative. I asked him, "Why not
raise your prices -- you are just a good as ...?"
He responded, "Being moderately priced makes my place a regular
comparative choice when people are choosing among local
restaurants. My menu gives my restaurant a competitive edge. If I
raised my prices and became a fine dining establishment, my meal
tickets would be higher but we would become a special event venue,
not a place you frequent. I'd have fewer customers overall and
very few who would come regularly. Frankly, I like my regulars and
we are gaining new regulars every month."
In most industries, there are many supplier choices, ranging from
high end to bargain basement. And in most instances, there is
enough opportunity for any number of providers to make a living by
being a comparative choice. There are those who preach that you
must become bigger and bigger, giving up your smaller (lower
margin) customers in favor of bigger, more profitable, ones. Here
is a business creating sustained value using an inclined plane of
steady growth that combines the strategies of selling each customer
more and taking good care of each and every customer at every meal,
not trading up to new, more affluent, faces.
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