Every business will have at least one competitor within their field, whether it is a multinational conglomerate or the small local business owner. The challenge then arises, how do you persuade customers to choose you? What is your point of difference?
Many companies will choose price as their point of difference – it is an extremely successful point of difference and is definitely effective in persuading customers. Businesses that often compete on price include:
- Retail chains
- Fast-food services
- Department stores
Many businesses will often implement a price matching scheme; if customers can bring in a cheaper price for the same product from a competitor they will match or beat the price. For most companies who sell goods this can be a very effective strategy but remember, one size does not fit all.
Before you decide to partake in a price war consider the following things:
- The nature of your business
- The product or service your offering
- The effects price drops could have
- The mindset of your customer
As residential builders competing on price is not always the best way to operate your business simply because as a small business, you cannot win. You’re competing against volume builders who have the power to drop prices significantly or develop promotions that create a more affordable product for customers. As small builders it is impossible to compete with those prices and remain profitable.
How CAN you compete?
We know how special building a home is to a customer – how close it is to the heart and the size of the investment. Therefore it’s safe to assume they may be willing to pay a little extra for quality and peace of mind.
By considering your customer’s needs you can now compete by:
- Offering a high quality service – during both the selling and construction processes
By providing exceptional customer service during initial meetings and taking the time to assess the needs of your customer they will understand your dedication to quality service.
Customers will have peace of mind, knowing a house will be built with high quality products and craftsmanship.
- Building an exceptional reputation
An exceptional reputation is one of the most valuable assets you can have. Despite your marketing and advertising efforts it will almost always come down to a word-of-mouth recommendation, if you’re known for the quality homes you build and quality service you provide you won’t have to worry too much about the price of your homes.
- You’re a local builder, using local trades and supporting the local community
Knowledge is power, as a local in your community you and your tradespeople should have an understanding of the various challenges and conditions during construction.
All Hotondo Homes builders work with an experienced marketing and sales team to define their point of difference, they also have the support of a nationally recognised brand to assist in building their strong reputation. They have access to national promotions in order to continue remaining competitive with volume builders yet still market themselves as local builders.
If you would like to learn more about joining the Hotondo Homes network please visit franchise.hotondo.com.au