One of the most daunting challenges facing the locksmith industry today is how to compete with the Big Box Retailer. Because of the economies of scales they represent, these retailers may be able to sell locks cheaper than locksmiths can even purchase them. While most of the industry realizes that...
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While Big Box retailers certainly are not your only competition, as an industry, they have become a formidable threat. By simply understanding the advantages the locksmith carries in regards to this competition, will help your business map out a successful strategy to compete with these retailers.
Choose products and services that will help you compete successfully.
To compete successfully in this market, you must choose the right mix of products and services to position yourself as the security expert, not just another place to purchase a DIY lock and key. When choosing the proper products to offer to your customers, keep the following things in mind.
1. Am I selling better quality products than that currently available at the Big Box Retailer? If I am, then I have a substantial argument as to why a consumer would pay more for a product through a locksmith than a Big Box Retailer.
2. Can the customer find the same equivalent product in the Big Box retailer? Even if the “exact same” product is not sold in the Big Box channel, will consumers perceive my product as a comparative equivalent? There is always value in explaining to a consumer “why” a product is only available through a locksmith.
3. Do not choose a commodity product that will be purchased solely on price. If you are forced to compete on price, you will never be able to compete.
These are just some of the things to keep in mind when trying to go head to head with a Big Box retailer. First, know your advantages and position yourself with the right partners who can help you leverage those advantages. In upcoming issues we will talk about:
- How you can use these advantages to craft a strategy specific to your business.
- How to choose the markets most suitable to your business based on your strategy.
- How to craft the proper market message to those consumers.
As part of a targeted marketing focus to help locksmiths compete effectively with the Big Box retailers, www.arrowlock.com will be providing a variety of free tools available to the locksmith, throughout the year. Each one of these tools will be outlined in upcoming articles in this publication.
Brad Smith, Brand Manager, Arrow
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