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In terms of profit, having a good, bad or ugly year is going to depend upon how you set yourself up to compete, in 2001. In most areas of the country, competition is fierce. By the end of the year, there will be even more competition and it will be more skilled.
Do not think your size, large or small, will make you invulnerable to competitive pressures. The biggest moose in the woods knows the dangers of a hungry wolf pack. The tinniest mouse knows other mice would like its burrow.
However, as you feel these pressures (if you aren't already) don't react like an amateur by automatically dropping your prices. That is not the way. While you may be tempted to get or keep orders by dropping prices, it will only weaken you, as you go into 2002.
Two facts make competing just with prices a looser. Fact 1: Over 67% of the buying public do not consider price the most important factor, in making a buying decision. Fact 2: Folks who consider price only, have the loyalty of a peanut and will drop you in a heartbeat, when (not if) someone offers a better price.
Some of you reading this article will be tempted to think, "but I can do both." No you can't my friends. If you think so, you are only kidding yourself.
No one can have the best selection AND the best quality AND the fastest service AND the lowest prices on everything. Thinking you can, is the fastest way to help your competitor that I know of.
You can however, have an excellent selection, quality second to none, timely service and a FAIR price, for you and your customer.
How can you do this? The answer is simple. Make you, your employees and your company, more valuable. 67% of the public will pay for a higher perceived value, but it must be real.
Coldly and objectively evaluate you and your entire company. Examine what you do, how you do it, when you do it, and, above all: why. If you seriously approach this task, with an open mind, some of the answers will surprise you. Most companies do things out of habit, because that is the way they started doing it. You may very well find policies, procedures, attitudes and methods that are cutting your own throat. At the very least you will find some things that will profit you to change.
Depending upon your size, help everyone become an absolute expert with your production equipment. If you can't do everything that is possible with your equipment, you can be sure that at least one of your competitors can. That will cost you business. Upgrade programs and equipment if at all possible, and become an expert with that. I know, I know. You have been using Corel 4 forever and you can do that better than most folks can use version 10. That may be true, but the ones who do know how to use it can do many things you can't do. Diversify, where you can. It is a "convenience" orientated world. The more services you can offer, the more reasons you give a customer to select you. No, I'm not suggesting you listen to sales "hype" about how you are going to get rich by doing something new. Just constantly stay aware of what the market is offering, to see if it will make you more money. If it will, get it.
Invest some time and money in making you a smarter and more effective businessperson. I have never understood the mindset that will encourage a person to spent $5,000 to $25,000 on a piece of equipment and even develop good skills with it, but not one regular dime or minute on improving their business skills so they can profit the most from that equipment. If you are one of the ones thinking, "I know I should do that, but I just don't have the time or money," consider this.
Superior business skills could be THE competitive edge in 2001. No matter the "creature feature" or the "bell and whistle" offered, there is not one new service, product or piece of equipment that your competitor cannot buy, just as easily as you. They can sell every product you offer and at least some of them will be trying very hard to develop excellent skills with their equipment.
However, I can assure you, from decades of observation and experience, that the least likely thing a competitor will do, is spend time and money on regularly improving their business skills. Consistently learning better people, sales, marketing, time management, display, production and efficiency skills, is not something most companies do. The most profitable companies however, do. Any amateur can start a business. It takes a skilled professional to make it profitably succeed.
I will be the first to admit that all three suggestions have a fair price tag of time and money. Doing nothing and not adapting to the changing market place will cost nothing in time or money. That price tag, however, may be extraordinarily high.