Tips & Talk 48 – A Heart-to-Heart About Your Competition
Today let’s have a heart-to-heart conversation about competition. Yes, this breath-stopping, gut-wrenching topic.
None of us get a pass from experiencing our physical and emotional responses when the subject of a competitor comes up. Just like others, you probably compare the quality and prices of your products, your social media following counts, and the many other unconfirmed stories you make up about all the ways they are more skilled, knowledgeable, or personable than you are.
Listen in for the 3 choices you have when it comes to competition and your handmade product business. Then I give you 3 ways to insulate your business from a competitive action by planning ahead and having a strategy in place to deal with it. Bonus – this plan strengthens your business overall and helps you attract customers too!
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Transcript
Hi there.
Speaker:It's Sue.
Speaker:And thanks for joining me for tips and talk day.
Speaker:These are bite-sized topics that I pull from community questions and
Speaker:things that I'm observing in the world of handmade small business.
Speaker:If you'd like to submit a topic,
Speaker:DME, over on Instagram at gift biz unwrapped,
Speaker:let's have a heart to heart conversation about competition.
Speaker:Yes, this breadth stopping gut wrenching topic.
Speaker:None of us get a pass from experiencing our physical and
Speaker:emotional responses.
Speaker:When the subject of a competitor comes up just like others,
Speaker:you probably compare the quality and the prices of your products,
Speaker:your social media following counts,
Speaker:and then many other unconfirmed stories you make up about all
Speaker:the ways they are more skilled,
Speaker:knowledgeable, or personable than you are.
Speaker:Here's the truth.
Speaker:No matter how successful you get,
Speaker:you'll never truly escape.
Speaker:Comparisonitis I recently had a conversation with a well-respected much admired
Speaker:powerhouse of a business owner who shares the same emotions that
Speaker:you probably do about some of her competitors.
Speaker:I was shocked to hear her talk this way,
Speaker:but it reinforces that this is something that doesn't go away
Speaker:with time or with increasing sales or reaching major professional recognition.
Speaker:Given this,
Speaker:you really only have three choices.
Speaker:I bet you thought I was going to say to,
Speaker:Nope, I'm giving you an extra choice here.
Speaker:So three choices you can decide to accept the fact that
Speaker:this is part of the gig.
Speaker:It's what you buy into when you start a business and
Speaker:you're ready to play big,
Speaker:all in,
Speaker:bring on the competition,
Speaker:or you can start your business in play small,
Speaker:stay under the radar and reduce your vulnerability,
Speaker:but also limit your potential.
Speaker:Or you can decide not to join in the game at
Speaker:all. I don't know about you,
Speaker:but I'm an advocate for only one of these options.
Speaker:The first one taking the chance and going all in.
Speaker:I decided a long time ago for all three of my
Speaker:businesses to give it all.
Speaker:I have take the hits deal with the emotional impact and
Speaker:revel in the successes that come my way.
Speaker:I encourage you to do the same.
Speaker:It really is worth it because the truth is if all
Speaker:you want to do is carry around a business card and
Speaker:say, you own a business.
Speaker:Are you really a small business owner?
Speaker:Or are you just pretending a facade of sorts,
Speaker:ouch, to truly work and grow a solid profitable income generating
Speaker:business. You have to take chances and accept risk,
Speaker:but when it comes to the competition,
Speaker:there are things that you can do to work through whatever
Speaker:comes your way and address the topic of competition.
Speaker:Head on first,
Speaker:accept the fact that it is not only possible,
Speaker:but likely that you'll be copied.
Speaker:I'll tell you a scary story.
Speaker:Have I told you this before?
Speaker:I don't remember if I have,
Speaker:but it's well worth repeating about 10 years ago or so
Speaker:I was at what was then called the craft and hobby
Speaker:show in Anaheim,
Speaker:California. We were exhibiting for the ribbon print company.
Speaker:So this was way before I even started gift biz on
Speaker:wrapped at breakfast.
Speaker:I got into a conversation with the woman next to me
Speaker:who was attending the same show over the next few days,
Speaker:I got to know her better.
Speaker:And as time went on,
Speaker:she confided in me why she was at the show,
Speaker:prepare yourself for this.
Speaker:She went up and down the Isles identifying products that could
Speaker:be easily replicated.
Speaker:She'd take a picture inconspicuously,
Speaker:I guess,
Speaker:and then send it off to China that night.
Speaker:If you can believe it.
Speaker:By the next morning,
Speaker:a Chinese factory already had a prototype and was selling it
Speaker:online for,
Speaker:of course,
Speaker:cheaper than the original designer,
Speaker:all within less than 24 hours.
Speaker:Honestly. True story.
Speaker:You can bet this is still happening and on a bigger
Speaker:scale today.
Speaker:How about what Amazon has been seen doing these days?
Speaker:It's not right.
Speaker:And depending on your legal protection,
Speaker:it may or may not be lawful,
Speaker:but it's out there.
Speaker:Sometimes it's not as deceptive and sneaky as this.
Speaker:Have you seen the new Dunkin donuts,
Speaker:omelet bites.
Speaker:They come in two flavors,
Speaker:bacon and cheddar and white egg and veggie,
Speaker:Hmm, looks suspiciously like Starbucks,
Speaker:egg whites,
Speaker:starring bacon and Greer,
Speaker:cheese and egg white and roasted red pepper.
Speaker:They even come in the same base,
Speaker:cardboard tray besides one tasting decidedly better than the other.
Speaker:My opinion,
Speaker:of course,
Speaker:I first glance,
Speaker:the only difference is Duncan's are shaped with a little hole
Speaker:in the middle,
Speaker:kind of like a donut.
Speaker:I'll give them a small little point for being clever there.
Speaker:My point is,
Speaker:no matter how big or small your businesses you are exposed
Speaker:and may be copied for you,
Speaker:the copying will probably be done by a smaller business competitor.
Speaker:And you can deal with this.
Speaker:I say,
Speaker:decide now that you know that it will happen.
Speaker:So you're not surprised when it does.
Speaker:And you already have a plan to address it.
Speaker:I had to do just that with the rip and print
Speaker:company, my biggest competitor stopped my website and copied my every
Speaker:move where product was concerned.
Speaker:I mean,
Speaker:seriously, he'd been in the business for decades before I showed
Speaker:up, but not until I started adding creative products to the
Speaker:mix to serve my customers needs and requests.
Speaker:Did he start doing the same infuriating?
Speaker:I share this because I'm right in there with you.
Speaker:I've experienced what I'm talking about in regard to competition,
Speaker:but did I close up shop and back away,
Speaker:not a chance game on this leads me to how you
Speaker:deal with competition.
Speaker:What you do to keep a unique identity for your brand,
Speaker:retain customers and build loyalty.
Speaker:I'll start with the hardest one first create product individuality.
Speaker:Something unique about your product that when seen or experienced is
Speaker:identifiable back to you.
Speaker:I say this is the hardest because it is really hard
Speaker:to find a product characteristic that isn't able to be replicated
Speaker:in all my years.
Speaker:There's only one company I found who has truly kept their
Speaker:product from being copied.
Speaker:This is the Zulu grasp beaded necklaces from the leaky collection.
Speaker:Katie leaky talks about this way back in episode,
Speaker:number 49 of the podcast to summarize Katie lives in Kenya
Speaker:and employs the Mussai women to make these beaded strands from
Speaker:the Zulu grass that only grows in the rift valley.
Speaker:China did try to copy and sell her product,
Speaker:and guess what?
Speaker:It couldn't be done.
Speaker:The Zulu grass has such unique qualities and when died takes
Speaker:on a special effect,
Speaker:all that China was able to do is recreate what looked
Speaker:like a little child,
Speaker:plastic toy necklace.
Speaker:It disappeared from the scenes pretty quickly because nobody was buying
Speaker:it. Now I know that pretty much all of us can't
Speaker:have a special,
Speaker:almost unattainable element like Zulu grass to work with.
Speaker:But another approach to the same idea is what Mike Lindell
Speaker:of my pillow does with all of his products.
Speaker:He calls out a characteristic that is part of his product
Speaker:that makes it special.
Speaker:And then he attaches it to his brand.
Speaker:His pillows have a unique fill that allows them to quote
Speaker:unquote, give you the best night's sleep.
Speaker:And they're also washable.
Speaker:Do other pillows have a field that allows for a great
Speaker:night's sleep and our other pillows washable.
Speaker:You bet some are,
Speaker:but only Mike pointed out.
Speaker:He also does the same thing with his Giza sheets made
Speaker:from the finest cotton in the world.
Speaker:Giza grown only in a region between the Sahara desert,
Speaker:the Mediterranean sea and the Nile river sounds exotic.
Speaker:Doesn't it?
Speaker:It makes you think it's exclusive only to my pillow,
Speaker:but is it?
Speaker:I don't know,
Speaker:but I do know he's the only one who pointed out
Speaker:and has connected it to his brand.
Speaker:Listen closely.
Speaker:The next time you see his commercials on TV and you'll
Speaker:see what I mean.
Speaker:You can do the same thing.
Speaker:What is it about your product that you can call out
Speaker:and connect with your brand Sheila of heavenly treats for you
Speaker:own to gift business in Nashville?
Speaker:She has claimed a chocolate guitar along with a huge guitar
Speaker:case gift basket as her own.
Speaker:The cookie joint makes a product called cookie fries,
Speaker:which are cookies shaped like French fries,
Speaker:complete with dipping sauces.
Speaker:So just like fries and ketchup,
Speaker:cookie fries and dipping sauces.
Speaker:You can bet this.
Speaker:One's got a lot of legal protection,
Speaker:but my point is pick a specific feature of your product
Speaker:that provides a benefit that your customer desires and pointed out
Speaker:over and over again.
Speaker:Another way to reduce the impact of your product being copied
Speaker:is to add a virtual product option to your business.
Speaker:This is what I did with the ribbon print company in
Speaker:response to the story I was sharing a minute ago about
Speaker:my competitor,
Speaker:besides our software being one of a kind,
Speaker:I also created training programs,
Speaker:special downloads,
Speaker:and a private Facebook support group only available to our customers
Speaker:that sets us apart and still does to this day.
Speaker:The funny thing about this is I wasn't doing it consciously
Speaker:as a reaction to the competitor.
Speaker:I was doing it because it served the needs of my
Speaker:customers. And that is always where you should focus your energy
Speaker:to serve them.
Speaker:In your case,
Speaker:you may create virtual classes,
Speaker:teaching the basics of something.
Speaker:You can make that way.
Speaker:Your customers have the option of buying a finished product or
Speaker:trying their hand at making it themselves,
Speaker:or provide virtual cooking classes that include products.
Speaker:You sell,
Speaker:you get the idea a third way to insulate yourself from
Speaker:the impact of someone trying to copy your product and stealing
Speaker:your customers is to create a personal bond between you and
Speaker:your customers.
Speaker:As a small business owner,
Speaker:you are the face of your brand.
Speaker:These days,
Speaker:it's easier than ever to present this to your audience.
Speaker:You can go live on social,
Speaker:create videos you include in your emails and interact with your
Speaker:customers via direct messages.
Speaker:The only hard part is for you to actually do it,
Speaker:which is an entirely different podcast topic.
Speaker:However, bringing forth your personality is the one true thing your
Speaker:competitor can never,
Speaker:ever copy.
Speaker:And it's something you don't have to spend time creating.
Speaker:You've already got your personality and style.
Speaker:You just have to let others see it.
Speaker:So in summary,
Speaker:as a serious small business owner,
Speaker:I want you to stand tall with confidence,
Speaker:present your handmade products boldly and with pride and where the
Speaker:competition is concerned.
Speaker:Glance back at them,
Speaker:knowing you have a plan in place your in control to
Speaker:attract and retain your most loyal customers.
Speaker:That's a wrap.
Speaker:I'm a get to the point kind of girl.
Speaker:And this is what you can expect from these quick midweek
Speaker:sessions. Now it's your turn go out and fulfill that dream
Speaker:of yours.
Speaker:Share your handmade products with us.
Speaker:We want them,