Comments on: How To Beat the Wal-Marts http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/ Small business marketing blog Thu, 21 Apr 2011 08:39:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: » How To Beat the Wal-Marts » Succeeding Steps LLC - Marketing and Operations Consulting for Small and Growing Businesses http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-13068 » How To Beat the Wal-Marts » Succeeding Steps LLC - Marketing and Operations Consulting for Small and Growing Businesses Wed, 30 Nov -0001 00:00:00 +0000 #comment-13068 <pingback />...... ……

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]]> By: Episode 8 {Duct Tape Marketing / Timeshifting Experiment} - The Promethean http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-13093 Episode 8 {Duct Tape Marketing / Timeshifting Experiment} - The Promethean Wed, 30 Nov -0001 00:00:00 +0000 #comment-13093 <pingback />...say about your business? How to beat the Wal-Marts. Sending and receiving very large files. Alan shared his love for his ... …say about your business? How to beat the Wal-Marts. Sending and receiving very large files. Alan shared his love for his …

]]> By: NeuroGuy http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-654 NeuroGuy Wed, 30 Nov -0001 00:00:00 +0000 #comment-654 The key point is that a major change in the competitive landscape means that your business may have to change. All too many business owners try to stick with the business model that worked in the past, and then complain bitterly when it doesn't work. Nice post. The key point is that a major change in the competitive landscape means that your business may have to change. All too many business owners try to stick with the business model that worked in the past, and then complain bitterly when it doesn’t work.

Nice post.

]]> By: Tom Vander Well http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-655 Tom Vander Well Wed, 30 Nov -0001 00:00:00 +0000 #comment-655 You're right on target, John. In fact, I posted about this a few weeks ago. I WANT to give my business to smaller local merchants and I WILL pay more, but I expect them to differentiate themselves in service, friendliness and familiarity. Interestingly, our town has the smallest Wal-Mart store in the world (it was recently a Jeopardy! question), but the new Super Wal-Mart is under construction. I wonder if the local merchants will get the message. You’re right on target, John. In fact, I posted about this a few weeks ago. I WANT to give my business to smaller local merchants and I WILL pay more, but I expect them to differentiate themselves in service, friendliness and familiarity.

Interestingly, our town has the smallest Wal-Mart store in the world (it was recently a Jeopardy! question), but the new Super Wal-Mart is under construction. I wonder if the local merchants will get the message.

]]> By: LLC formation author & Seattle CPA http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-657 LLC formation author & Seattle CPA Wed, 30 Nov -0001 00:00:00 +0000 #comment-657 Harvard professor Michael Porter says there are 3 basic strategies for beating your customers... (1) On price (ala Walmart)...(2) On differentiation (ala Nordstroms)...(3) Using a hybrid price-differentiation strategy where you lure some customers on price and some on differentiation (ala Target)... (The parenthetical asides to Walmart, Nordstroms, and Target are mine.) But back to point: The rather simple but powerful insight of Porter's is on point here: You could beat Walmart on price but it'd be far easier to beat them on differentiation ... or by targeting a particular customer group with a combination of pricing and differentiation. I run a CPA practice in a Seattle. On one level, I compete with H&R Block in that we both prepare taxes. But I have no trouble competing with Block's low prices. In fact, if someone calls asking first about price, I encourage them to call like Block. The "price shoppers" aren't my niche. If someone asks why I charge $350 for something that Block will purportedly charge $125 for, I say, "Hey, look, it's not the same product. If I do your return, you get someone with two masters' degrees and 25 years of experience... If you go with Block you've maybe got someone who's been through a 10 week course who is making $10 an hour" Yes, I lose the price-sensitive shoppers to Block (as I should). But high income, high-net-worth taxpapers happily consider my more expensive service. Harvard professor Michael Porter says there are 3 basic strategies for beating your customers… (1) On price (ala Walmart)…(2) On differentiation (ala Nordstroms)…(3) Using a hybrid price-differentiation strategy where you lure some customers on price and some on differentiation (ala Target)…

(The parenthetical asides to Walmart, Nordstroms, and Target are mine.)

But back to point: The rather simple but powerful insight of Porter’s is on point here: You could beat Walmart on price but it’d be far easier to beat them on differentiation … or by targeting a particular customer group with a combination of pricing and differentiation.

I run a CPA practice in a Seattle. On one level, I compete with H&R Block in that we both prepare taxes. But I have no trouble competing with Block’s low prices.

In fact, if someone calls asking first about price, I encourage them to call like Block. The “price shoppers” aren’t my niche.

If someone asks why I charge $350 for something that Block will purportedly charge $125 for, I say, “Hey, look, it’s not the same product. If I do your return, you get someone with two masters’ degrees and 25 years of experience… If you go with Block you’ve maybe got someone who’s been through a 10 week course who is making $10 an hour”

Yes, I lose the price-sensitive shoppers to Block (as I should). But high income, high-net-worth taxpapers happily consider my more expensive service.

]]> By: Brad Farris http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-658 Brad Farris Wed, 30 Nov -0001 00:00:00 +0000 #comment-658 For a very similar message check out the new book by Bo Burlington call Small Giants (www.smallgiantsbook.com). He points out that intimacy is the one thing that small companies can do really well, that big companies can do not at all. [disclaimer: I have nothing to do with the book, but love the idea.] For a very similar message check out the new book by Bo Burlington call Small Giants (www.smallgiantsbook.com). He points out that intimacy is the one thing that small companies can do really well, that big companies can do not at all.

[disclaimer: I have nothing to do with the book, but love the idea.]

]]> By: Ellen Weber http://www.ducttapemarketing.com/blog/2006/06/29/how-to-beat-the-wal-marts/#comment-660 Ellen Weber Wed, 30 Nov -0001 00:00:00 +0000 #comment-660 I become amazed at the way customer care has fallen through the cracks and what you say here is soooo needed... for the soul as well as for profits.... Thanks for the great post. I become amazed at the way customer care has fallen through the cracks and what you say here is soooo needed… for the soul as well as for profits…. Thanks for the great post.

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