You know how hard it is for independently owned retailers and franchisees to compete with the large chain stores. How can you differentiate your store and stand a chance to survive?
- Price. The “secret sauce” in retailing today is differentiation beyond price. If retailing is only about finding products at the best price, then it’s “game over”. Competing on price is a race to the bottom. When the big brands start a price war, there is, even more, pressure on the retailers’ margin.
- Differentiation by product. Given the competitive pressures retailers are facing from chain stores it is essential that you differentiate your store to drive sales and profits. Local Craft beer and Small Batch spirits currently offer a great opportunity for retailers to differentiate themselves from chain stores.
- Build a network of suppliers. Surround yourself with a great team of suppliers. Collaborate with your suppliers. You’d think that working on retailer-supplier relationships should be a no-brainer, it should be your no 1 priority. We have a large network of suppliers and local manufacturers that we can connect you with.
- Communicate Your Difference How are you communicating with your customers and your potential customers? Starting a Facebook page is easy. Getting paid page likes is easy, but not necessarily the best strategy. Grow a tribe, a community of loyal customers. By giving them interesting and relevant information. Please don’t post silly things like “Happy Monday”| How does that add value to anyone? Post regular and relevant content. You can use your Facebook page to introduce your staff to you customers. Run interesting competitions with real prizes. Growing your social media profile is a lot of work and it takes a lot of time. But please don’t outsource this important job to an agency that has no liquor knowledge.
Holger is the founder of DrinksWiz.com