Analyze Your Competition
I’m sure than when you first decided to work from home online the one thing you had in mind was a brilliant idea. Or so you thought. Like many more before you I bet you started your business without knowing much about the industry. You knew inside that your idea was great and that it was going to bring you a lot of profit. And after much work and a lot of money putted into it all you got to show for it was….what?
You aren’t the first and probably not the last to start a business just from an idea that he or she thinks it’s the perfect one and then find out that many people before them have tried the exact same thing and haven’t made any real income from it.
Many people think that all it takes to work from home on line is to create a product, create a website and just wait for people to come and buy it, yet no one does.
This scene is very common because people think their idea is unique and start a business without doing the market research first. You have to do your “homework”, find out who are you competing against and what are they offering.
One thing you will always have to look out for is prices. Understand how competitors are pricing their products and you will start making profit. For example if most competitors have the product priced at a certain price then this means that’s the price buyers are willing to pay for that product. If you raise the price you might be surprised to find out nobody will buy that product from you.
However if the prices vary than it’s a safe bet to say that if you put a higher price on that product you will get some sales.
Another important thing is to analyze what the competitors are offering. For instance if a person is selling the same product you are selling but offers besides that product many more bonuses and you aren’t offering anything else then be sure people won’t buy anything from you.
Know what your competitors are selling and you will be able to place your product perfectly in the market so you will get as many sales as possible. For the example above, if you were to sell your product at a price that was significantly lower then your competitors you might get ahead and make a profit by selling more then them.
Also think about what are your competitors relying on to sell their products. Why would somebody buy their products and not yours? Understand these things and you will become more creative in your offering and you’ll be able to touch certain aspects in your sales that will bring you in much profit.
Analyze the market see your competitor’s strong points and weak points. If you know what they are doing well you can imitate them, and if you know their mistakes you can avoid them. Use this and you will get ahead.
These are just some of the things that competitors analysis can help you with. Understand the market and you will become the leader in your niche.