Opening a new coffee shop is not extremely difficult in and of itself, but opening
one with a competitive advantage that allows it to thrive rather than flounder
in the local market is a challenge that requires planning ahead. Nonetheless,
there are several proven routes to competitive advantage used by coffee shops,
and one may be successful for yours.
Quality
Differentiation
The quality of your products can
convert those who currently drink at other establishments to yours and hook
those who might be one-time visitors to return. To ensure high quality, you
have to check quality at every step of the service process, from the sources of
your coffees and other products, to the systems, staff, and equipment you use
to store, grind, brew, and serve. You may need to have unique or unusual
sources for your products so that you are not competing closely with other
shops who share the same suppliers. Researching suppliers may be the best
method for this type of advantage, unless you have specific talent to develop
your own products that will make your shop stand out.
Experience
Differentiation
Some retail locations acknowledge
that the experience of the visit is compelling differentiation for customers
regardless of the products sold. By offering a specific atmosphere, theme, or
entertainment, your shop can stand out even with relatively standard products.
There will be costs associated with whatever unique environment you are trying
to create, so make sure to research these and show how it will enable you to
either charge a higher price or bring in more customers than you would have
otherwise.
Price
Differentiation
As you reach lower and lower prices
for a basic cup of coffee, your shop can tap in to a much larger market by
converting users who would making their own coffee. However, once you shoot to
be one of the lowest price coffee shops in your neighborhood, it can be
difficult to find other ways to distance yourself from the pack. Even though
you will make up in volume some of what you lose in dollars per customer, you
will probably have little money to play with to attempt unique marketing or
decor to build a brand, and you will always be in fear of direct price
competition from both independent and chain shops that try serve at low prices
as well. A price differentiation strategy will work best for you if you have a
unique way to cut your costs substantially, making more room for profits or
branding.
Are you looking for more advice on starting
your own coffee shop
or develop your coffee shop business please visit here: - http://javatimescaffe.com/
No comments:
Post a Comment