Every person in business must have a competitive advantage and must be able to tell people what their competitive advantage is. If you don’t have a competitive advantage, then it’s difficult for someone to whom you are proposing your product, information or services, to give you the business over someone else. What are some of the competitive advantages that people use?
One of the competitive advantages that people use is price. When you sell on price alone, it can be a competitive advantage. However, if you do so, you are limiting your profit margin.
Another competitive advantage could be a guarantee. It’s possible that your guarantee is offered for a longer period of time than your competitors, which reduces the risk for the purchase in making a decision. Whatever your competitive advantage is, it needs to be clearly stated and firmly planted into the mind of your prospect.
Your competitive advantage sets you apart from your competition. If your product does have a competitive advantage, you need to make sure that your competitive advantage is related to the prospective purchaser as a benefit.
Remember, people buy benefits, not features. Your competitive advantage can also be benefits that are clearly giving the prospective purchaser the answer to “What’s in it for me?” When you are offering your competitive advantage to your prospective purchaser, make sure that you are specific. Don’t speak in generalities.
For instance if your competitive advantage is price, say, “Our price is 10% lower than all competitors.” Then justify why it can be 10% lower. If your competitive advantage is guarantee, state specifically what’s different about your guarantee. Is your guarantee twice as long as your competitor? Is it three times as long? Is it a better than risk-free guarantee where you give the consumer something extra, even if they decide to return your product? Be specific.
If your product is twice as strong, twice as durable or lasts twice as long, explain why. Be specific. Make sure that the consumer walks away understanding the competitive advantage for your product.
If you don’t have a competitive advantage for your product, then you may have difficulty marketing it. You will be competing against other people and they will be competing against you. Can you make money in this situation? Sure you can. People do it all the time. But it’s much easier when you incorporate what your competitive advantage is versus your competitors.
Write down the benefits that your product, information, or service offers. State them in terms that are specific or that clearly distinguish why your product, information, or service is clearly unique and better for a prospective customer than anyone else in your field.