022 - Three Ways to Compete
It may seem like there are infinite ways for your business to stand out from your competition, but when you really drill down, there are only three. Listen to the full episode to find out the three ways you can compete, plus how to figure out which one you and your business should prioritize.
Show Notes
Story of the Show — Martin has a client who does exceptional work and provides outstanding customer service, but lowballers moved into his market. He was concerned about how he was supposed to compete with them. Martin’s answer? You don’t. (4:20)
What are the three ways to compete? (6:29)
When does operational excellence work best? (9:33)
When does being a low cost leader hurt? (11:48)
If you don’t know your worth, it’s really hard to get your pricing right. (16:03)
When should you compete on product leadership? (21:25)
How do you compete on customer intimacy? (27:36)
Competing in customer intimacy while being good at both operational excellence and product leadership is the sweet spot for most small businesses. (31:24)
The true value of communication, and why you really should prioritize it. (34:14)
The easiest way to prioritize communication with your customers. (35:25)
So, how do you choose which of the three areas to concentrate on? (37:57)
One Thing You Can Actually Go Do — Download and use the USP Workbook from the resources section and work through it. (41:50)
Mount Rushmore — Best USPs (43:10)
Quote of the Day — “You can’t be all things to all people. Do what you were made to do.” - Robert Kiyosaki (55:02)
Closing the story — Remember Martin’s client who was worried about low ballers coming into his market? It was like a lightbulb went off and he stopped trying to compete on price. Instead of stressing over how he can do his top quality work and customer service for a low price, he’s charging what he’s worth and his business is thriving. (55:06)
Ethan’s Insights — Listen to Ethan recap the three areas to compete. (58:17)
Quotable Moments
“At the end of the day, you’ve got to be yourself and you’ve got to complete with your strengths, not with your weaknesses.” — K
“What I see with contractors is that it’s usually the guys that are just starting that are doing the low cost method, but they don’t have operational excellence and they’re usually the ones that have problems that they’re not even aware of.” — K
“Pricing issues are typically our own head trash.” — M
“If you become known as the communication guy, it keeps your customers in the loop and they always know what’s going on. Your business will grow just from that.”” — M
Mount Rushmore
Best looking cashiers!
$6 burger at Carl’s Jr.
FedEx - “When it absolutely, positively has to be there overnight.”
3 Day Kitchen and Bath - if they don’t finish the remodel in 3 days or less, you get it for free.
Southwest Airlines
Starbucks - “We’re the third place you hangout.”
Enterprise Rental Cars - “We will pick you up”
National Car Rental - “Car rental at the speed of business”
Resources
The E-myth Contractor by Michael Gerber
Sign Up For A Free Consultation to talk about your USPs
More from Martin
More from Khalil
More from The Cashflow Contractor