Copyrights ? 2006 Lama Kalla
You wake up one morning and you have an idea ? it?s the kind of idea that will change the world and make you a mega-billionaire in the process. You are incredibly excited about it, pour all your money into the business only to discover that everyone else, except you, has been doing it for years and has a drawer full of them.
You create a killer product, throw up a website, wait for the traffic to come expecting everyone to buy your product, yet no one does. You don?t understand it ? surely everyone needs your product?
These are surprisingly common scenes with people who are new to business. They get excited about their idea without doing the proper market research. You cannot start a business without an idea of who you are competing against and who else your customers may buy from.
Why is this so important you might ask?
It?s important because you need to understand how your competitors are pricing their product. If all of them have priced it at $67, this may be because that is all the market will pay. If you then come in with a $997 product it won?t sell because the target market refuses to pay more that $67.
If your competitor?s prices vary widely, then you know that there is scope for you to price your product higher as the market is more flexible.
What are your competitors selling? If one person is selling a book with a ton of killer bonuses for $67 and you sell a book alone for $67 ? how can you compete? People will see the competitor?s product and realize it has more value and buy theirs instead.
If you know what your competitors are selling, then you know what your target market wants and so can pitch your product perfectly. In the above example, you might sell the book alone for $27 and upsell other products.
What are the key selling points for your competitor?s products? Why would someone buy their product and not yours? If you can understand this, then you can be more creative in your offering and target those key selling points in your sales copy or your product offering.
What are your competitor?s doing well, and what are they doing badly? If you know what they are doing well, you can imitate them. If you know what they are doing badly, then you can improve upon it. Either way, you are on to a winner and can stand out from the competition.
These are just a few examples of how competitor analysis will help your business to succeed and become profitable. Understand what is on the market and leverage this knowledge to become the dominant player in your niche.
Lama Kalla "The Cyberspace Invader" is a fearless author and entrepreneur both on and offline. Lama has started a one woman crusade to eliminate the hype and help new Internet marketers get their projects off the ground and bringing in an income. Secure your copy now of her newly released ebook that has the internet buzzing with excitement. http://www.StopInternetMarketing.com | |
