| One thing that can put you out of business that | | | | they may want to stress the convenience and |
| most owners give little thought to is not knowing | | | | economy of their takeout menu. The idea here is |
| how your competition wins their customers and | | | | to discern what will solve the problem of the |
| then not responding in such a way that turns their | | | | intended customer and then offer that solution in |
| customers into yours. In other words, what you | | | | a way that makes you more attractive than the |
| really want to do is get to know them so well | | | | competition. |
| that you can devise a plan to profit from their | | | | If you can figure out the reasons people patronize |
| business strategy. | | | | your competition, you can offer them something |
| How well you know your competition is a question | | | | better than they are getting. For example, if your |
| that every business owner needs to ask. | | | | competitors are offering a 10% discount on |
| Remember, this includes all of your competition, | | | | certain merchandise on certain days, you might |
| not just the obvious ones. A business like a | | | | offer a larger discount that is good every day, |
| restaurant has not only all the other restaurants | | | | with the provision they have to spend a minimum |
| within the surrounding area, they also have to | | | | amount. |
| consider their customer base as well. If they | | | | This type of strategy has the advantage of |
| operate in an area where many people have lost | | | | bringing in more people every day, and by |
| their jobs or where the population makeup has | | | | adjusting the discount and minimum, you will make |
| changed to a group that rarely eats out, then | | | | more money since many people will not spend |
| they are competing against the local | | | | the minimum necessary to get the discount. This |
| supermarkets as well. | | | | is not trickery, mind you; it is a valid strategy to |
| To answer this and turn it into their favor, the | | | | bring in more business, while at the same time, |
| owner may decide to offer "home-cooked meals" | | | | rewarding your very best customers with a |
| at a price their potential customers can afford. Or, | | | | discount. |