Here is a perfect example. I have a client who performs powder coating on metal…heat baked painting. There are many who do this and thus competition is fierce, with everyone performing the same skills and delivering the same product. It is difficult to elevate oneself above the crowds in such an environment as everyone is the same, and thus all that remains is price competition. Not good.

Searching for a competitive advantage that’s special we discovered two passions the two owners enjoyed and determined that this could be the added opportunity we were looking for as follows:

1. One partner owns a parrot and is involved in marketing parrot products via internet. We decided to powder coat a parrot cage and offer custom colors to discerning homeowner who want their cage to match their bird or their room or whatever. No competition, high value and very profitable and a huge potential market. A great market niche.

The other partner rides a motorcycle so we expanded into custom powder coating bike parts, others do this but the price point is excellent and we can grab our fair share of business as it is geographically sensitive because of the high cost of shipping, so we will focus on the local and regional market and create a significant market opportunity.

2. I have another client who owns an electrical service company who has a slight specialty in pools and has a steady stream of valuable business for wiring pool installations.

3. I have a towing company client who specializes in big trucks and has huge equipment capable of handling any size truck, and as a result he gets most of the truck business in his area.

This is not always possible in every business situation, however there are many creative ways to distinguish yourself from the rest of the market and then reap the benefits of specialization, higher profits and a niche that remains less competitive then your core business may be.

Overnight delivery, short orders, custom work, unusual market segments, a unique product that you control, and then the rest of your typical service or product line goes along for the ride and caries the basic overhead burden while the profit is in your specialty or niche item or unique service area.

I have a tree service client who says he is an expert with large trees, which he is, yet others with regular size trees figure he must be the best as he does large trees so they hire him for all sizes.

6. I have a pizza chain that puts out a terrific product, truly superior, yet their signature item is a specially designed box which has built in feet and cooling holes preventing soggy bottoms and the customers love it, ask for it and come back because of the great product and the great box. Unique specialization.

I have a pipeline company client that will perform much of the work required for a job in their own large building over the winter and then install in the spring and summer saving money and time. He has become a preferred supplier because of this and makes more per job. A brilliant move that keeps his customers coming back. Could others do this? Of course but they don’t, so it is a huge advantage he enjoys.

I have a landscaper who also has a distributor relationship for a source of high quality pavers for making driveways, so not only does he get an inside price for his own jobs, but he is the main source for this item and others who bid against him frequently purchase the pavers for a job he was out bid on, so he makes money on the job anyways. Competitive advantage.

The standard business, the core effort, must carry the day, but the specialized niche provides a competitive advantage, a better profit position and more revenue. It has the power to crry the core business int many areas they it might not ordinarily get to. It may mean the difference between success and failure.

Find your niche and then exploit it, not to the exclusion of your core business but in support of it. Do this and reap the benefits. Call if you need some help; 413-549-2966.