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barbour paris Beating the Big Box Retailers

 
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PostWysłany: Wto 6:51, 13 Sie 2013    Temat postu: barbour paris Beating the Big Box Retailers

A question that [link widoczny dla zalogowanych] faces many small business owners is how tocompete with the big box retailers. Wal-Mart is a common target.To their credit, they've established a highly efficientdistribution system and a really simple business model. They'llwin on price due to distribution efficiency and economies ofscale. So, this isn't meant to be a shot at Wal-Mart or anyother big box player. However, I for one can't help but to hopethat there always will be a spot for the smaller players. Theymay not be able to [link widoczny dla zalogowanych] win on price, but they can provideoutstanding service and bring profits back to their respectivelocal community.
Here in Rochester, we're lucky enough to be home to Wegmans.Wegmans [link widoczny dla zalogowanych] is generally perceived as an upscale grocer. They offeran amazing wealth of services. When Wal-Mart came into town,they changed their pricing model to become more competitive.They continue to improve their extraordinary logistics system.They've followed the model of competing on price, although notbeating them on it, while using their other attributes to putthem over the top. Trust me, there is no comparison betweenshopping at a high-end Wegmans versus a Super Wal-Mart. That'swhy they've held their own.
With all that said, fighting on price is a battle you'll likelylose. Especially if you are offering identical items. Wal-Martwill almost always beat you on price, although there are big boxplayers who are less focused on price. So it might be a littlemore feasible against one of them. Still, I'd differentiatealong other lines. Service is the obvious one. Going after amore upscale segment is another feasible [link widoczny dla zalogowanych] route, although it isdependent on your local community's [link widoczny dla zalogowanych] demographics. With all thatsaid, it is still helpful to remove inefficiencies in yourbusiness. This will make you more competitive on price, and youcan let other factors put you over the top.
So, the question becomes, how do you [link widoczny dla zalogowanych] What's particularly interesting is that somefolks have been successful even competing on price. Save-a-Lotcompetes by providing the convenience of a smaller store inlocal neighborhoods that aren't name brand. To me, that seems totake away the direct brand competition, [link widoczny dla zalogowanych] which is a good thing.The Dollar Tree also attracts those looking for low price in asmall store with simple pricing. In fact, their operatingmargins [link widoczny dla zalogowanych] are higher than Wal-Mart's. Finally, Costco succeeds viaproviding higher-end products [link widoczny dla zalogowanych] to those who want good items atlower prices. Small business is a primary market, one that Sam'sClub is now going after.
So, there you have it. Try to reduce costs where possible, offersomething unique, and potentially go after a different [link widoczny dla zalogowanych] segment.If you are in the grocery business, you'll likely take a hit.However, see if you can expand into unique areas that willdifferentiate your business. Worldly foods, organic foods, andso on. The same can applied to other businesses. Of course, itis easier said than done, especially if you are in an area withlimited population. However, maintain hope and consistentlyadapt your business model, others have dodged the [link widoczny dla zalogowanych] big boxthreat. [link widoczny dla zalogowanych] can too, [link widoczny dla zalogowanych] just continue evolving.


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