My Competitors Is My Inspiration!

"My Competitors Is My Inspiration!"

Hmmm, A sentence that makes you curious? ☺

All right, I'll tell the story.

My Toy Store.

In 2012, my toy store in two years opened but is stagnant (read: there are rarely buyers). The question arises in my mind: "what's the cause?"

Until one day, I finally found it is the cause (unintentionally).

When I'm on my way to the center of wholesale toys in the area of Central Jakarta, in the middle of the trip, I see a new toy shop.

That store location is about 800 meters. My competitor's!

Its owner was a man of Chinese descent.

I get information from residents around that the toy store it was already three months standing.

A big store. That shop's products are complete (yeah, understandably, because the owner of the shop has strong capital).

While the illustrations of conditions my shop when it's: when there are visitors who buy a toy, then it will empty the contents storefront. Meaning: toy products stock in my store is very very little.

Toy shop I was unable to compete because of the price of the product at a competitor that's very competitive. The owner of the competitor store was taking a margin of 40%-50% on its products.

While my toy store sets a margin of 100% for all types of toy products!

Of course, logically, My store would lose if competing with him. Compete in terms of the amount of the product and the selling price! (Be advised, at that time I was still a novice in the business world, so inexperienced ☺).

I had to quickly think of a solution because my business could collapse due to losing the competition.

But how?

I was confused thinking about the solution at the time. Because thinking too hard, that made me experienced insomnia for one week. How is it possible I can sleep soundly while my brain keeps thinking?

Because it has not yet got the idea, I even had time to think the solution is change the type of merchandise only. So it is no longer necessary to compete with those competitors.

After a week of turmoil suddenly arose a bright idea in my mind. (While mumbling) Oh my God! Why must I confused? The solution turned out to be easy: I had to imitate a competitor's strategy! Hmmmmh (I am back muttering ☺)

(Silently in my heart) I recognize that competitor more experienced in terms of skill and business management when compared with me. It is visible from the marketing strategy and the control of his toy store.

I have to plan something!

A few days later I began to observe that competitor stores.

I did reconnaissance and surveying his shop from across the street. When shopkeepers are not in there available, then I went to his shop (pretend to shop while observing the product prices).

If the owner is in the store, I don't lose my mind. I told my sister to be a spy to that toy store.

After some time doing 'spy' (about a month), there are 3 points important information I get.

Then I did some analysis.

Finally, I got some essential conclusions, i.e.

#1. The competitor's shop sells some of the favorite toys very cheaply. Examples include toys, hot wheels, games PSP, kinsmart, and others — that favorite toy placed in a strategic place. So easily visible to buyers.

But at toys other less popular were displayed on the inside of the store. On the toy less popular takes the average margin of the range of 40-50%. (normal price).

Uniquely, I also saw that behind the shop was a collection of die-cast metal rare toys. These toys are sold at high prices. The margin taken reaches 100% - 200%.

#2. Popular toy products that are sold very cheaply above (point 1), deliberate on display also to area entrance of the store. Price is also written quite large on a piece of cardboard paper.

According to my analysis, it was all done with the aim that everyone who passed in front of the store could see it. So that the impression appears, as if the toy store is very cheap.

#3. I noticed the writing on the promotional banners that also impressed the ' provocative '. Example, like this sentence: "discount 50%-70%, valid for only five days, due to limited stock!!"

Try critics this sentence: "only five days only". But it's been a month I noticed a banner it is still mounted in front of the store. Do you know what I mean? ☺

That's three results of analysis of my competitor business strategy.

Then I adapt all the strategies and modify it!

The first Action I did was change the price of my toy shop product (which is very expensive) become cheaper (like the price of my competitors).

And I am doing a trick that my competitors can not imitate.

Tricks like what?

That is:

The tag of product in my toy shop (is the price is expensive with a margin of 100%) I did not replace it (just 'crosses' it with using pens). So the original price is still visible. Then under the old price, I created a new price tag (like price my competitors).

What is my purpose for doing so?

To make an impression on customers that my shop prices have gone down and become cheaper. (because there is a comparison price above it).

And that's just a trick.

And tricks like the above cannot be imitated by my competitors that because his store is using a computerized product system. Because stores that use the computerized cannot play these tricks. Unlike my store that still uses the conventional way (bargaining), so this trick I can do.

Can you understand friends?

I am sure you will understand my explanation.

It turns out the trick worked!

Because customers think the price in my toy shop is now lower. There are even customers who think the price of all my products less expensive than the value of the toys in my competitor's store.

The reason is quite funny.

My store is considered cheaper by buyers because the price can go down and can be negotiable. While (according to their recognition) when shopping in my competitor's store, it cannot be bargained at all.

"The owner is stingy," the buyers said. 😁😁😁

Very funny. Understandably, buyers in my toy store are average a layman.

Since then my store has continued to thrive.

If in the first year stands the customers who come just originated from around the area near the store only.

Then, after I 'stole' the business strategy from the "enemy", at once my "source of inspiration" it, then my store begin to have a brand (because it is considered cheap).

Finally, over time my toy store became increasingly known. My toy shop's branding circulated through word of mouth information.

My subscription was finally getting more and more, and now coming from a distant location.

Some are coming from Cibubur, Cilangkap, Cipayung, Depok, Cijantung, Cibinong, and even customers are coming from Bogor!

HONEST, if the presence of my rival shop had not triggered it, maybe my toy store would never progress like it is today.

So, sometimes we need to compete, in the sense that:

- LEARN FROM YOUR COMPETITOR!

- COMPETITOR STRATEGY ANALYSIS, THEN 'COPY' AND MODIFICATION BY OUR WAY!

- SURE YOU WILL WIN!

- DO NOT GIVE UP EASILY!

That's my story.

Competition is not to be feared, but use it smartly and could use it as a means for us to continue to learn, sharpen experience.

Hope can be useful. If you feel this article is helpful, then share it. Hopefully, it can be beneficial to your other colleagues.

Author by: Izal.