Retail business will focus on convenient locations to bring in customers. The same company may have 3-5 stores with in a five-mile radius. A service company may only have one location servicing hundreds of customers, over 40 miles.

Since we all have competitors, what causes you to stand out? If you are relying on low pricing, you need to make it up in volume, or you will win the race for going out of business first.

Do you rely on superior quality, charging a premium price to fewer customers? That strategy can even work in a down economy, if you have built an outstanding reputation and have few competitors. But even the wealthy may stop buying to avoid flaunting during a tight economy. When I had my Electrical service company, many of my customers were multi-millionaires. Price was not an issue. They were paying for my dependability, quality of work and courtesy. But during a recession, some of my customers stopped remodeling. I even had a customer that required the materials delivered at night and my truck was parked down the street. Old money has rules of propriety, which are strictly followed.

If you cannot describe your customer in detail, you need to refine your research. Because if you know who will purchase your goods and services at premium rates you will not need to deal with customers who take up so much of your time and produce little profit.

Many times the huge customer is too demanding and pays too slow for most of us. If you decide to deal with these giants, you will need to raise your prices to cover all of the headaches. Many businesses have found that a small customer is actually more profitable.

So, keep reviewing your marketing plan until your find your niche

Ken bear Cole

A Second Look Business Consulting LLC