Prepping Your Small Business for the Holidays, Part 3 of 5: Competing with Bigger Brands

If there is one specific problem that most small businesses run into during the holiday season, it’s competing with bigger brands that may have more brand recognition. In this guide, the third entry in a five-part series, the strategies that can be used to level the playing field between small and big companies will be explored.

Big businesses have one distinct advantage going into the holiday season: lower prices. Larger chains will always be able to buy in bulk, which helps them pass the savings on to the consumer. In the current economic landscape, with Americans looking to spend less money, this advantage is a big one.

With that said, it’s important that small businesses not compete with bigger brands on price. Trying to undercut competitors is an ineffective way to gain business because it ends up hampering bottom-line revenue. Instead, entrepreneurs should seek other strategies to win over holiday shoppers.

The key is providing value. Since small businesses can seldom beat bigger ones in term of monetary value, they should look to add it elsewhere. For example, AllBusiness suggests providing guests with a more personal shopping experience. Big companies may not know their customers by name, but small companies frequently do, and they may also know their favorite items, colors and other things they prefer.

“Look at the names and addresses and emails of every customer you’ve got, and call them,” AllBusiness suggests. “Or send them a postcard. Tell them about some merchandise that would make great Christmas gifts. Tell them you haven’t seen them in your store lately.”

Small businesses may also want to try to be more unique during the holiday season. As ABC News notes, big-box retail stores all have to look more or less them same to stay within company policies. Small businesses can afford to stick out. Entrepreneurs should try to be “that cool shop around the corner” rather than just another retailer. Go all-out and decorate for the holidays. Small things like offering complementary hot chocolate can go a long way.

Finally, small businesses should ensure their staff is prepared for the holidays. Creating a personal experience ultimately starts by having friendly and gregarious workers, so entrepreneurs should encourage staff to bring their A-games during the holiday season.

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