If Ray Krock, the founder of McDonald’s, had expanded his fast-food concept to serve pie, and meatloaf, fish sandwiches, soup, etc., he would have been a dinner; serving a broad-based menu, instead of specializing in just hamburgers and fries… he would never have opened his second location let alone his ten-thousandth.
If Monro Mufflers decided to do brakes, tune-ups, tires, general repairs, windshields, etc, they would be a common everyday service station, and could not have sold thousands of franchises.
If a steak house sold a full menu of everything, they would probably not be known as a steak house.
You get the point, but so many business owners miss this mark.
Especially in this downturn, where competition is fierce and consumers are looking for the best deal and the best resources, specializing is the way to go.
Not wanting to lose business, many business owners tend to expand their offerings to whatever the next person who walks in wants.
Their thinking is they do not want to lose the opportunity to make money and do business, so give the customer whatever he wants.
What he is missing out on is far more valuable than the extra momentary business.
First, there is the value of specializing, it includes an economy of scale, if you just focus on one major item, you get very good at it, you limit the inventory and supply requirements, you have the expertise and identity, and you can market with pinpointed focus you can buy better.
You get very good at something, better than everyone else, and you become known for this expertise. You can charge less than others because of your efficiency and can, therefore, own your market share, or charge more than others because of your expertise and still own the market place.
Wow, all that by just limiting the desire to be everything for everybody? Yes, just that.
It’s called your mission, and it should be focused, defined, specific and adhered too.
If you sell tires, do it, exclusively, significantly, better than everyone else, and a better price point. It is a simple message, a simple direction and it works far better than generalizing.
There are specialties in law, medicine; almost every trade has its generalized practitioners and its specialists.
The specialists do better.
Be one, it works. Review your position in the market and since you cannot really be good at providing everything for everybody, figure out what you do best and fill that niche better than anyone else in your market. That works.