Newsagents and, indeed, many small business retailers, think that the only way to compete with big business competitors is to match them on price.
I think chasing a big business competitor on price is a mugs approach.
Big business will beat you on price every time. Not necessarily on a real price comparison but absolutely and certainly on perception. They spend millions compared to your pittance convincing shoppers they have better prices – even if the claim is not true.
So, my marketing advice is – save your money promoting on price.
Newsagents spend too much money competing on price with no long term gain.
Instead, spend your marketing dollars on a different promotion. The jigsaw promotion we are running at the moment is a good example. Here are some more to get you thinking:
- Instead of a back to school promotion in January, run a back to work promotion after Australia Day.
- Or, instead of a back to school flyer based on price, write a letter explaining what it means for the community, your employees and you when people buy their school supplies from you.
- Create your own card season in between major seasons.
- Promote everyone in your business as an expert.
- Be part of an important local community group – giving of your time and expertise could be more useful that donating cash.
- Distribute flyers in low seasons – not when letterboxes are full.
The better you explain the value you bring to a community, especially if your newsagency is away from the city, the greater the opportunity for locals to engage with you because of the emotional value proposition you offer.