Beating the Big Boys
by Janet E. Lapp, Ph.D.

One Time Rights Only - 685 words

When mass marketers like Wal-Mart and Home Depot move into town, many florists literally quake in their boots with fear. But as computerization increasingly levels the field between small, family-owned firms and much larger mega-stores, florists have more ammunition than ever when slugging it out with the big boys.

A CASE STUDY

Here's how one florist faced the competition and won by being creative with her advertising and marketing. Instead of ads in local newspapers, she acquired a mailing list of couples in her area, then mailed letters to them about the beauty of relationships and the power of flowers. The letter ended with a soft-sell offering to deliver a bouquet of roses for Valentine's Day. If the initial letter went unanswered, she sent a second letter two weeks later warning that their relationship might be in jeopardy.

A few days before Valentine's Day, a third reminder, marked "Court Order" on the outside, arrived for the still-stubborn couples. Inside, it contained a "Couple's Guide To Divorce," a small piece of chocolate and a note stating that, "We hate to see your marriage end this way, so we have enclosed some chocolate for you to give as a last resort. P.S. It's not too late to send flowers."

Not surprisingly, the florist's orders reached an all-time high -- and her sense of humor made her unforgettable. Do you think her customers will ever use a mass merchandiser again?

MORE SMART STEPS

Here are even more ways to compete that play off your strengths.

Get Market Savvy: Know the demographics of your customer base and shop your competitors. Price-compete on staples and products your competitors also offer. Then offer splurge items that make your shop unique.

Take Up Arms With Others: How about harnessing some of the buying power of mass merchandisers by teaming up with other floral retailers? (If just for basic supplies, such as foam, preservative and simple containers.) Towson Computers in Baltimore teamed up with five other independents to form an alliance with a MicroAge franchiser that ended up a win-win alliance. The computer stores get cheaper inventory and MicroAge sells more product.

Fill in Blank Niches: Fiore's competes with Blockbuster Video in Memphis by stocking lesser-known and classic videos. Hardware stores competing with Wal-Mart stock items not carried by the mass merchandiser. The trick is to find a narrow, deep niche. For example, be the only florist in your area that has all the supplies necessary for elegant parties -- and the staff that knows how to pull it together.

Can't Beat 'em, Join 'em: A small computer store helps superstore CompUSA with tough diagnoses and repairs for a double-win situation. What about forging an alliance with a floral department to handle hard-to-fill orders?

A women's clothing store hangs bathrobes in the changing room to coddle customers. What about hiring people to sweet-talk customers and treat them with kid gloves? Surely you can do that better than the mass merchandisers.

Be Faster: Most mass marketers can't react as quickly to changing market conditions, but you can. Customers don't want to wait for anything any more, so the business that latches on to a new trend first will often grab the lion's share of business.

Think Local -- And Big: Be a big presence in your local community, but also take advantage of the world-wide reach of the Internet to give your shop a wider presence.

However you intend to compete, keep in mind that small businesses have their inherent advantages -- you just have to ride them to the bank.