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46 • OCTOBER 2014 • WORLD FENCE NEWS THE HUMAN LINK by Jim Lucci Management Motivational Associates This column previously was pub- lished in the October 2009 issue of World Fence News. • • • This month's column contains some thoughts that might help you to compete with the so-called "big box" retail stores in your area. This year has been a particularly tough one for local fence companies to deal with, much less having to com- pete with the big boxes. I know from talking with so many of you this season just how difficult it has been and how far you have been forced to stray from the strengths that you as a professional have and how those strengths have worked for you in past seasons. What I am specifically referring to is the general attitude of much of the potential customer base who are not only getting significantly more quotes than in the past for installation jobs, but also for the D-I-Y market as well. The overriding factor in their se- lection process this year clearly has been price, which in turn delays the decision making, and on the surface, doesn't give you the opportunity to sell the quality of service and the quality of product that we have all come to represent. Having said this, we still need to stay focused on those things that have made us what we are and we must double our efforts to continue to sell quality and service. But first let's look at what the pos- sible mind-set is of your potential cus- tomer base. First, what are your customers' perceptions of big boxes? Second, why do people buy gas, pack up the family and drive up to 30 miles away from their own local mer- chant to buy from these big boxes? Let's look at some of the reasons why this could be the case. One, there is a perception that the discount retailers' pricing across the board are significantly cheaper than the same product purchased locally. Two, there is a perception that the so-called "big box" will have a larger selection of any one product than the local retailer. And, three, the customer feels that he/she can shop more efficiently by making all their purchases in one place, thus saving time and money. Well, are the aforementioned per- ceptions true? Most local small town retailers will tell you that they are not. Most major manufacturers set pricing that even discounters cannot sell be- low. In addition, they (the big boxes) often buy products or items that they can sell at lower prices, but they are often of lower quality. In order to survive, today's small- er retailer or local fence contractor must offer products and services that the big boxes cannot, and they must also provide a level of service that the customer cannot find elsewhere. The completion is tough, but the smaller retailer or contractor has ad- vantages to offer their customers that the big guys cannot. The smaller retailer must learn to stand apart from the big boxes with better service and larger selection and turn their own operation into an indis- pensible service to which their cus- tomers can turn. Here are a couple of thoughts that hopefully will help you to focus on what you need to do to stay on top of the battle with the big box stores. Number one, know your competi- tion. The first thing you need to do is learn as much as you can about your competitors. Over the years some of you have told me that you rarely, if ever, go into a big box store. Well, you must vis- it them on a regular basis and make note of the types and styles of fencing which they carry, as well as the fit- tings and posts, etc., and the prices of each item. Ask questions and listen to the an- swers. Imagine yourself shopping there and "see" what the buyer sees. Second, notice the selection of merchandise. We mentioned earlier that you should note the various items of fencing and accessories that the big box carries; however, you need to realize that big box stores and deep discounters make money by offering a limited selection of many products. You may choose to compete by offering a larger selection of a few products, something the big guys can- not and will not do. The third factor is price. The next thing you will want to face up to is a bit of reality. There is no way you will be able to compete against them by offering the same merchandise they do. You will never underprice them, nor should you try. The image you want to project to your customers is that you are differ- ent. That is your selling point, and the reason you are in business in the first place is to stand for something that your customer can't get elsewhere, namely, quality of product and knowl- edge. And fourth, what else can you offer? Most people shop at these big boxes to save money without realizing what they have to give up in selection and service to do so. In order to win customers, you need to offer the thing the boxes do not. Some thoughts on competing with the "big box" stores One way to add value to your products is to offer outstanding customer service. This should include a thorough knowledge of the products you sell as well as instructions on how your customer can get the most out of them. (800) 523-3888 www.tiltaway.com info@tiltaway.com TILT-A-WAY RESIDENTIAL & INDUSTRIAL OPERATORS Compare our quality! You will see there is a difference! Commercial Residential All operators meet UL-325 and CSA-247