Fast Talk

Customer service is key. Usually (and I don't think I'm alone here), if the service is extraordinarily good, I'll return to a small retailer, and pay a little more for a better experience. Sometimes a savings isn't worth being ignored or even harassed into buying unwanted products by sales people.

Read the book, Raving Fans by Ken Blanchard and follow that model to the letter. Kind of like what Rachel mentioned, "Customer service is key", and in this book, Blanchard makes a great case for the fact that customers are satisfied with you or your competitors because they don't know any better. My company has taken this approach from day 1. We offer consulting services for the Apple/Macinstosh platform and in theory we have a lot of competition in our marketplace. We are almost always the "last one invited to the party" and we've grown quite used to being asked to stay around after everyone else is gone. While part of that stems from our level of expertise, we are told time and again that it is more so because our clients feel like we are the only firm that took the time to gain a true understanding of what they want and need.

Independent retailers should go out of their way to visit an Apple Retail store. They do retail very well and even though they are probably considered a Big Box retailer, customers come in droves daily. By and large, their employees understand well how to help a new customer discover what it is they want and then they deliver that to them, right there on the spot. What could be more fulfilling?

You must differentiate yourself. That's it. That's the key. How that's done are matters of strategy and tactics.

Generally, you cannot compete on price. Unless, of course, you choose to charge higher prices in an attempt to create an impression that your product or service is somehow better simply because it's more expensive. (Believe it or not, that strategy often works.) Otherwise, if you're going head-to-head with a big player and they're aware of you, they can easily price you out of the market, if they take you seriously (which is a big "if"). They've got the power of time on their hands - they can hold out longer than you can.

However, price strategy is only one way to compete. As previous posters explained, you can compete on service as well. Additionally, you can compete on technology, location, marketing, product selection, etc. There are so many ways to compete, but I think one of the main things to remember is scalability. Remember that they're big and that size usually makes them slow to adapt due to a plethora of reasons.

You're small. You can be nimble. Remember to be flexible and adapt to changing times, events, trends, etc. Specifically remember that you can adapt to changing customer needs faster and more easily.

One final point is to become a tactical master. Most of what I've explained in previous paragraphs were strategic solutions. Always be thinking about your SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Keep your eyes and ears open and be ready to switch directions at a moment's notice. That's not to say that you throw all of your planning out the window. But you must be willing and able to change because of new circumstances. You must balance strategy and tactics. Be humble and don't think you're always right. Conversely, don't let others change your mind for you when you know that you are indeed right. Never rest. You can and should be pleased, but never satisfied. Remember CANI: Constant And Never-Ending Improvement. And look up the definitions of "strategy" and "tactics." Make sure you understand them thoroughly, with a special focus on how and where they differ. You must employ both.

In the end, all of this boils down to differentiation. That's the only way you, or any business, will survive. It doesn't matter how big of a player you are. At the time of this writing, Circuit City is a big player but they're not convincing the marketplace that they're different and better than Best Buy, thus they're losing market share. If Circuit City's inability to differentiate effectively can hurt them, it can certainly hurt the little player.

Think and act strategically. Think and act tactically. Most importantly, think and act in ways that help to differentiate your business from others in positive ways. Do this and you will succeed. Don't and risk getting lost in the haze of the marketplace.

Take away suggestion: Read "The Art of War" by Sun Tzu.
Take away mantra: Always be selling!

By offering exceptional customer service that leads to positive behavioral change by the customer.

For example, golfers will frequent and buy goods and services from their country club's golf pro shop because they want to become better golfers...not because the golf professional offers competitively priced merchandise.

Focus on customer centric services as opposed to discounts & sales.

Obviously Customer Service is king. I say that because if everyone is writing it here then obviously it's what they look for in the firms THEY do business with.

I'm of the same opinion. I'll go to Joe's Hardware before Home Depot ANY day. Why? Friendly, personal service. Short lines. I know where everything is. It's convenient to me geographically.

Differentiation is also key, as mentioned above. The Big Box stores pride themselves on carrying everything. Well, they can't carry EVERYTHING. What can you offer that they don't?

My company (www.NPSG.com) imports unique office products and wholesales them to catalogs and websites. We specifically do NOT do business with Staples, Office Max, etc. One of the selling points we tell our dealers to use is that these are NOT commodity products that you can buy 'just anywhere'. And our dealers very much appreciate that competitive edge.

Small businesses will also be ablet o use Web 2.0 techniques to reach fans and follwers more easily than a Big Box store can/will. By the time Wal-Mart's Corporate Law department approves the message that their PR department has designged, and has given it to their IT department to put out there on the web...well, Small Guy would have 2 blog posts published, 12 'Tweets' out there, and all of their friends on FaceBook in the know...

Agree with Scott on reading Sun Tzu's Art of War. (My favs are: Sawyer, Ames and McNeilly books.

#
One cannot build a Tangible Vision (a complete strategy that encompasses the grand picture, a strategic overview and an operational plan) if they do not know the specifics of their grand settings.

Gathering market intelligence is the first step. Assessing the data strategically is the next step.
The key phrase is ["Strategic Assessment"].
#
Once the "strategic assessment" is completed, the next step is Building the Tangible Vision.

[Continued] One does know the key target and cannot properly plan anything, if they do not know their grand settings.

Not everyone likes big box stores or needs large quantities - we who are single, for example. I don't need 72 rolls of toilet paper and I don't want to have to store it.. Independent retailers can best survive by joining together in co-operatives to purchase whatever they sell; by offering knowledgeable, helpful clerks; by offering real service; and by making their stores places people want to buy from, since the reasons why people buy from one store and not another are legion. Too, if independent retailers band together to provide niche shopping experiences, they can compete successfully against the big box stores.

Ron-

I don't know what its like in the UK, but in the US its about the "consumer experience" not necessarily the product. Note for example the new 1500 sq. ft. Wal-Mart stores, Wal-Mart's looking to better their "buyer experience." Independent retailers should do the same!