1) Supply Chain
You need to research suppliers thoroughly and you need to have multiple options available for you. When possible so to avoid being at the mercy of the wholesalers who might increase the prices for raw materials or for product components. You should manage supplies more effectively by making use of the multiple wholesalers to keep the costs in check. Always be on the lookout for those new suppliers who might be willing to offer deals to you just to gain your business.
When you are shopping around for wholesalers. It is also worth checking if the prefabricated items might represent the cost savings over doing it by yourself.
2) Positioning
It is important for you to know where you fit in the market. And knowing your competition is also a big part of this. You might have a larger operation that you are hoping can be all things to all people. But it is more likely that you will be zeroing in on a specific demographic. Such as those people that are seeking premium quality items or services, those that are seeking discounted products or services, or something in between.
If you are a low-priced pizza parlor that is struggling in a town full of low-priced pizza parlors. You might find out that you will be able to improve your market share. By just targeting those that are willing to pay a premium for top-quality ingredients or toppings.
3) Promotion
You can do a better job of reaching your potential customers simply by figuring out where your potential customers are at. If you are trying to reach an audience through the social media, for example, it is good to know which age group is making use of which platforms.
A 2019 Pew Research Center survey showed that the adults are nearly twice as likely to be on the Facebook than on the Instagram. However, when you are looking only at those aged 18-24, the gap narrows significantly with about 71 per cent on Instagram and 80% on the Facebook. Using that data as an example, it is wise for you to make sure that you don’t forget about the Instagram if you are trying to reach a younger audience.
4) Pricing
You need to review your pricing strategy to be sure it makes sense for everything that you are offering. Consumer demand, the product availability, and other of the external factors all can play a role in how much you should be charging for the goods and for the services you are selling.
Perhaps you are running an ice cream shop in a town that draws a lot of tourists during the summer months. When the demand is high and the more customers are entering your store, it is fair to charge a premium for the items that is on your menu. However, during the colder months when all of the tourist crowd is gone, you should try and update your menu and offer winter-themed items at discount prices just to keep traffic heavy.