Your product may be better but where is your market share?

This is a post that can apply to any size business as it is an age-old business problem. You have a superior product but yet your competitors have the market share. It’s hard to understand. Your devoted customers love your product – they tell you so. Why shouldn’t you have the market share? The real key is to understand the other factors that are influencing the purchasing decision. It’s not only about the quality of your products. To gain market share you have to incorporate business acumen into your efforts. To demonstrate this further, I am going to share a story about a local restaurant we recently went to and I hope it gives you some insight into how business acumen can help you gain the market share your product deserves.

In our small area, there are two restaurants specializing in the same cuisine. Both are family owned and while Restaurant A has superior food, Restaurant B has a superior business model.

Here are some comparisons of the two with the lessons learned for each:

1. Location:
a. Restaurant A is on the boarder of the worst area in town while Restaurant B is in the heart of the commercial district.

b. Restaurant A is out of the way for most of the demographic that would frequent the establishment while Restaurant B is very easily accessible.

c. Parking is limited for Restaurant A, causing the need to park on the street or in a lot away from the actual restaurant (an issue in inclement weather that is common around here). Of course Restaurant B has a very large parking area.

*Verdict: Restaurant B wins!

Lesson #1 - make your product accessible to your market – don’t expect your market to go out of their way to come to you!

2. Hours of Operation:
a. Restaurant A only offers lunch as a take-out only four days a week. Ugh! This one really gets me. It’s a family owned and run place. The husband is the cook. The wife and adult son serve. Yet they don’t open the dining room for lunch. They say it’s not “worth” it. Really, you are in an area that is not convenient so why would I drive there only to get a lunch to go??? Of course Restaurant B is always open for lunch.

b. The dining room at Restaurant A is only open 5 days a week, for limited dinner hours and they frequently close weeks at a time for family trips back to the home country. Restaurant B is open 7 days a week, 52 weeks a year, excluding Thanksgiving and Christmas, of course.

*Verdict: Restaurant B wins again.

Lesson #2 – I have written about this in previous posts – be open to your customers!

3. Service
a. Both start of equal on this one. As big as Restaurant B is, the owner will still make every attempt to visit every table. Of course, the wife and son at Restaurant A are the server so the diners get that personal touch there.

b. Where it starts to divide is the amount of attention. Customers want to be greeted and served but you cannot be overly familiar. This is still a business relationship. Don’t make it uncomfortable for your guests. The entire time we were at Restaurant A, we heard the son’s voice. He didn’t stop talking and to almost every table. The wife was a little better but still… Know when to stop or you’ll chase your customers away.

*Verdict: Restaurant B wins.

Lesson #3 – They are your customers, not your family or best friends. Give them space to enjoy your product!

4. Marketing
a. Restaurant A places small ads in the local paper. Restaurant B has ads, television commercials, billboards and a website.

b. Restaurant B has some products for sale including their spices and salad dressings.

c. Restaurant B is a MAJOR player in the local non-profit scene. They sponsor events, they donate, they participate and they are genuine in their efforts.

*Verdict: Of course, no surprise, Restaurant B wins again!

Lesson #4 – Regardless of your size, don’t underestimate the power of marketing. Keep your name out there in any way possible so your customers don’t forget about you.

Clearly basic business acumen topics such as customer experience, business practices and marketing could take Restaurant A to a whole new level. As good as their product is, they are resistant to change and refuse to take action. They are in business in spite of themselves and unfortunately will continue to lose market share. Don’t be Restaurant A. Embrace business acumen to get the market share your product deserves.

Disclosure of Material Connection: I have not received any compensation for writing this post. I have no material connection to the brands, products, or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”