I couldn’t agree more – niche is the way to go in the current marketplace, as there are so many generalists.  Through the internet, niche markets can now be fairly substantial and, if you’re an expert in a particular field, you can command a higher price.

Become known as the ‘go-to’ person for that skill, or that industry and people will be seeking you out, rather than the other way around.  You can demand higher prices because of your knowledge, so you’re fishing in a very small pool which contains some very fat fish – and you know exactly what they eat for dinner!

I remember a great example someone shared with me a while ago about a realtor (estate agent) in the United States who attended an industry conference in the midst of the recession.  Whilst his colleagues were lamenting the terrible situation, he was telling everyone he’d had a great year and asking what they were complaining about.  The other attendees couldn’t believe it and some questioned him about how he was enjoying success when everyone else was struggling.  He told them that he was finding it tough too, but that noone wanted to know that.  People buy from successful, enthusiastic people, so that’s what he was – and it was working.

There are some estate agents who have been enjoying success even in the past twelve months, with property prices falling, whilst vast amounts of the market have been cutting staff and reeling in costs.  So, what makes the difference?  Why are some really busy and others terribly quiet?  Why are some still making lots of money, even in a downturn?  It’s not a different industry, different geographic areas, or a vastly different model.  So, if it’s not the model, is it the business owner?

We had a recent example ourselves of how great marketing, backed up with fabulous customer service can generate property sales.  A few months ago, a property developer customer of ours launched the first phase of their development; just nine properties.  Because of the way it was marketed, over 300 people attended the launch weekend.  Two people turned up with cash deposits and fought over one of the plots and, a few months down the line, eight of those nine properties are sold and seven more have been sold off plan for the next phase of the development.

(I should add that this company has three local competitors, all offering lower priced new properties within a few miles.)  So why were they so successful?

Of course, I can’t tell you exactly what we did, because they paid a lot of money for that strategic help, but it shows it can be done.  The top tips were:

• Focus on your audience – understand who you want and target them specifically
• Do something different – every estate agent advertises in the property pages and on Right Move.  How can you make people stop and think, and take notice of you?
• Offer people something for free – the power of free champagne cannot be understated!  (In fact, the competitor up the road announced a champagne open weekend the day before this particular launch – I love it when competitors copy you – it shows you’ve had a great idea!)
• Create a fear of loss – with so many people at the launch, prospects wanted to make sure they got the property they wanted, so they committed on the day and put down sizeable deposits to reassure the developer of their serious intent.
• Have some fun – I cannot tell you how much fun this project was.  We worked alongside a graphic designer, a web designer and a copywriter.  To have the luxury of a creative team meant the customer benefited from four creative brains – and it definitely paid off.

Give it a go – what have you got to lose?

One of the key things we look for is strengths and weaknesses – often your competitors have different strengths to you and, by understanding that, you can focus on the things you do well and create some meaningful unqiue selling points for your business.

When you’re researching your competitors, there are a few common mistakes to avoid:

1. Hiding Your Identity.

Whilst this was a well-used (and fun) way to capture competitor information, there are now certain laws that protect companies from this.  It’s much better to ask a customer to call, or contact the owners yourself and agree to meet and share information that could benefit you both.

2. Copying Your Competitors.

This is a common trap business owners fall into, because they see a competitor doing something they aren’t – and they don’t want to be left behind.  But, beware – unless you know their marketing is better than yours, and producing a great return on investment, why assume they know something you don’t?

3. Dissing The Competition.

If you only research your competitors in order to tell customers how bad they really are, then please don’t waste your time.  You will only serve to destroy your credibility, as noone likes the kid that tells tales on their friends.  This is a very basic rule of marketing, but I never cease to be amazed by the amount of companies who ignore it.

James Dyson put it into perspective in his autobiography when he commented that comparing yourself to your competitors in a public arena only serves to promote them – using your own money.  And why would you want to do that?

4. Treating Competitors Any Differently to Prospects

Your closest competitors can often be your very best allies, and can also be a potential source of business, so we recommend building a relationship with them if you can.  You often find you both have expertise in different areas and can work together to provide more value to customers than you could on your own.

For example, if you run a hotel, would you rather turn a guest away when you’re full and let them look for a competitor on their own.  Or could you suggest somewhere they could try, that you know will offer a similar level of service to you?

In some industries, I appreciate this is very difficult.  They may be very traditional and extremely competitive, but working together at some level may be worth a try – it’s definitely the best way to do business.