A few weeks ago, I was talking with a local owner about growth. Like many owners, he was feeling the pressure of competition. New competitors seemed to be everywhere.

As we talked, he said, “I compete on price. It’s what everyone competes on.” I’ve thought about that conversation several times since then. Price does matter, as does quality. But if those are the only two ways you compete, you’re playing a very hard game. There will always be someone willing to charge less, and, eventually, quality alone becomes hard for customers to judge before they buy.

The businesses that seem to grow and stay healthy over time usually find additional ways to compete. Here are five that I’ve personally seen make a difference.

1. Differentiation

If a prospect sees two businesses as essentially the same, the conversation often comes down to price. Differentiation helps change that to your advantage even if your price is higher. It’s often a collection of small things that help differentiate, like:

• Better communication
• Stronger guarantees or warranties
• Faster turnaround times
• Specialized expertise
• More reliable scheduling
• Better overall customer experience

When customers clearly understand why you’re different, they become less likely to compare you to others solely on price.

2. Customer Experience

Many businesses say they care about customer service, but few build systems that consistently deliver a great customer experience. Some things that create the biggest advantages are:

• Answering calls and messages promptly
• Clearly explaining what you do and what customers should expect
• Showing up when promised
• Providing regular status updates

Think about your own experiences as a customer. How often have you been frustrated simply because no one returned your call or kept you informed? Unfortunately, its common. Which means businesses that communicate well immediately stand out.

3. Systems and Processes

Strong systems may not be exciting, but they create powerful advantages. Good systems produce:

• Consistent results
• Better margins
• Predictable quality

They also reduce:

• Completion time
• Mistakes and rework
• Scheduling conflicts
• Dependence on any one person

Customers may never see your systems directly, but they will notice the benefits. The result is often a smoother experience for both employees and customers.

4. Leadership

Many small businesses eventually encounter the same challenge. The owner can only do so much. There’s only so much work one person can supervise. There are only so many decisions one person can make. There’s a limit on how many team members one person can effectively lead.

Growth requires developing leadership throughout the organization. When more people can solve problems, make decision and lead others, the business becomes capable of growing beyond the owner’s personal capacity.

5. Financial Literacy

Most business owners can quickly tell you their revenue and bank account balance. Fewer can tell you:

• Gross margin by job
• Profitability by service line
• Profitability by customer

That information matters because when you understand where profit is actually coming from, you can do more of the right work and less of the wrong work. Revenue is important, but profitability is what keeps a business financially healthy.

Try This

Get with your team and ask “Besides price and quality, what do we do better than our competitors?” The answers may reveal strengths you’re overlooking and gaps you need to address.

Final Thoughts

When new competition arrives, the answer isn’t always to lower prices. Sometimes it’s to become better in ways competitors overlook. These advantages are often unique and harder to copy than a lower price and quality work.

PS: Not sure where your competitive advantage is today? Hit reply and tell me a little about your business. I’ll send back one are I’d consider focusing on.
​
Perry Myers
​The Outlier Team​