A key factor in any Business is its Advertising. While large scale businesses have enough free resources to spend lavishly on advertising, small Business Advertising has to be effective and yet cost friendly. Small businesses depend heavily on marketing techniques to draw more shoppers.
As a result of the current recession, small businesses have suffered a lot. With the increase of competition, there’s been a decrease in available resources. Without a safety net of large cash flow like the ones big businesses have, small businesses are being forced to close their doors. In order to maintain profits and increase clientele many novice entrepreneurs lower their prices in the hopes of increasing their business volumes. What they fail to understand is that only 5% of the shoppers base their decisions on price alone. So by dropping their prices small businesses end up dropping wages, marketing costs, and over all quality of their business. Taking this route blows off the other 95% of customers that base their choices on quality, service, and of course advertising. Because small businesses usually don’t handle the vast amount of customer flow that large corporations do, they can’t benefit from a price drop in the same way.
Don’t forget that it’s effective advertising that pulls in your price concious customers. If you’re decreasing what you put into your small business advertising, then you’ll end up with less customers. To ensure steady profit a small business needs to show that it’s a specialty, and not just show that it can lower prices. This in turn calls for effective small business advertising. First off you have to show your creative niche, and prove that you offer more than your competition with offers like unique service, better customer support, error free order, etc. Once you dare to be different and better from the rest, you can demand better prices and still attract customers. Your small business advertising plays probably the biggest role in gaining your customer’s trust and loyalty. Your small business advertising should show customers why you’re the perfect choice for their needs by focusing on your company’s unique and special service.
When a small retailer decides to compete on price, he is on risky grounds. The position of reigning giant of the retail price wars belongs to only one…Wal-Mart. You can never beat such chains at price, so instead of cutting down on prices and compromising your product’s value, you should instead focus on building brand loyalty rather than price loyalty. small business advertising should never sacrifice pricing, because in the end it’s the value you put into your advertising that builds consumer loyalty and keeps them coming back.
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