Promote a Product's Uniqueness to Maximize Sales

Entrepreneurs Beat the Competition through Product Differentiation

Nov 16, 2009

Entrepreneurs face at least some competition from other business owners. Therefore, finding ways to stand out in the crowd are essential for business success.

Most entrepreneurs face at least some competition from others who sell similar products or services. Therefore, finding ways to be different than competitors can feed business success.

Determining how to promote the uniqueness of a product or service needs to be addressed before the business opens. Otherwise, an entrepreneur will be at a disadvantage from the very beginning. Here are seven ways that a business owner can separate herself from the competition through product / service differentiation.

Attract Customers with Lower Prices – The cost of a product or service is often the primary method for attracting customers. American culture values a good bargain and people will often compare notes about how much they paid for products or services. However, small businesses are at a disadvantage regarding price because they don’t have the sales volume to make cheaper prices possible. Competitive pricing is a priority for a business but having the lowest price is not the only or even the best approach to take for many entrepreneurs.

Create a High Quality Product or Service – Promoting the quality of a product or service can be a great alternative to price for standing out from the competition. This is particularly true for small businesses that are more often owned by entrepreneurs who have creativity and drive but not financial resources. Quality issues can be determined by purchasing the products or services of competitors or gathering information from customers who did to identify ways to be better.

Be Unique, Innovative – In addition to price and quality, creating a new product or service that has very little competition can lead to success. There may also be opportunities to add value to something by improving it, making it easier to use, etc. Many potential customers appreciate the idea of purchasing something that others don’t have or that are built / operate better than comparable products or services on the market.

Offer Outstanding Customer Service – Providing better support and service can help an entrepreneur build a strong reputation and attract customers. Poor service is a common customer complaint directed at larger, more complex businesses that do not prioritize it. Small businesses can take advantage of their size, flexibility, and ability to deal directly with customers to gain an edge in the marketplace.

Have a Convenient Location or Easy Access – Another way to attract customers is to have the place of business in an easy to reach location such as downtown or at a mall. In addition, offering the flexibility to perform services or delivery products directly to people’s homes either by providing service calls or delivery or through Internet ordering processes can prove very successful. A variation to this would be establishing accounts with area retailers to offer a product in a variety of locations through a town or city.

Provide Attractive Packaging – There have been numerous studies that demonstrate the importance of product packaging to successful sales. There are a variety of ways to make packaging more appealing including appearance (prettier), environmentally friendly, child-proof, and usability (can be reused for some other purpose).

Offer Better Technical Assistance – This is similar to customer service but related more to value-added consultation that an entrepreneur can provide to increase or improve the usage of the product or service. One example would be for a seller of computer equipment to provide assistance in downloading software or attaching peripheral devices as part of the purchase price. Providing extra service or consultation is an area that a small business person can exploit to gain market share. It often does not cost much to perform except for the time spent doing it.

Take the time to analyze everything possible about competitors’ products, customer service, marketing, and any other characteristic to identify ways to be different. If something is lacking in any of these areas, chances are good that customers have noticed also. In addition, entrepreneurs can utilize their own strengthens and priorities to offer unique products and services including outstanding customer service / technical assistance, better quality, and usability.

The copyright of the article Promote a Product's Uniqueness to Maximize Sales in Entrepreneurs is owned by Steven Watson. Permission to republish Promote a Product's Uniqueness to Maximize Sales in print or online must be granted by the author in writing.