The little guy isn't getting beat by the big guy; they aren't even showing up!
Having been at a startup the last few years, I understand the frustrations of competing against super-large competitors. It's the classic "David vs Goliath" story-line; Big Box vs Mom & Pop. It's hard to compete against larger competitors. They have more resources, money and the customers know the big guys' name.
I've recently bought a house and in light of my own David vs Goliath battles, I've been asking for locally owned companies to help us get the house in order. Doing my part to support local and help David fight Goliath.
For the most part? It's been a disaster.
To the "little guys" and "mom & pops," I have a gut-wrenching secret for you: you aren't getting beat by the big box brands...you are beating yourselves! See if you are guilty of any of the below and if you are? The issue is you, not your competitors. It's time to stop blaming others for your lack of business and start competing again. So, let's go through four easy steps to help you compete (and win!) against the big brands:
Step 1: Show Up!
One of the biggest sources of frustration I've experienced in working with local shops is getting someone to even show up! Here I am, trying to give away my money and no one is wanting to take it. I've had multiple no call/no shows to bid out projects. I've left voice mail after voice mail to get someone to come look at a project and received no call back.
I know that bidding out projects is time consuming and you don't win every bid. But it's an opportunity to meet someone new and provide good service. Maybe you don't win this bid but if you show up, act professional and give sound advice? You may win the next one. But simply not showing up because you're "too busy?" You'll never get my phone call again.
Step 2: Process and Document
Just because you're a smaller shop doesn't mean you can scrimp on process and documentation. It requires no financial investment and will save you time (your most valuable resource) in the long run. Create a form that allows for consistent quoting. Organize your quotes so that you don't need to remember each detail.
In trying to get some carpet quoted out, I have no fewer than fifteen emails containing different parts for the same project. 15! And, even worse, they are all new emails! So, it's not like one string. Then, when I have a question about the quote...the contractor is completely confused and we spend another dozen emails going round-and-around to get on the same page.
Having a consistent process will allow you to speed up getting your bid to the customer, reduce your contribution time and make the customer feel even more comfortable with you.
Step 3: Do The Job Right
I once asked a local contractor to re-grout my shower. He came out, did the job and left. A few days later? The grout was coming out. Turns out, he didn't bother to remove the old and loose grout. So, he had to come back out and do it again.
Now, what do you think happened on trip #2? Did he learn his lesson or do it the same way? He did it the same way...and the new grout started peeling out again after a few days.
By this time, I was over it. He didn't get paid and I hired someone else to come do it. Luckily for me, it was an up and coming contractor who did great work and I've used over and over again; spending thousands of dollars with him.
Step 4: Follow-up
Getting a new customer is expensive. Every business book will tell you this. Getting business from old customers is far cheaper. Yet, how many mom & pop organizations do a simple follow-up after a project? Let's say you're a painter and you just finished painting the interior of the house. Drop a note in the mail a few weeks later saying "I hope you're enjoying the new paint job, let me know if there's anything I need to touch up. Also, I do exterior paint, so if you'd like to freshen up the outside and make it look just as good as the inside, I'm happy to help!"
You've just planted a relevant seed! The customer gets that note and is excited you followed-up up with them. They go outside and look at the paint..."hmm," they think, "maybe I do want the trim freshened up." More work for you, more money in your pocket...all for a letter that took you two minutes to write and the cost of a stamp.
Us smaller shops don't have the resources or money that a large corporation has, but we can still compete (and win!) using the above steps. Will you win every project? Absolutely not, but that's part of competition...we don't win everything. But if you skip the above steps I can guarantee you'll lose far more than you win and you'll spend your time bemoaning how the 'little guy' just can't compete against the 'big guy.'
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