There are some that would say “absolutely not”.  The reasoning behind this is based on price alone.  Big chain stores have more buying power than smaller stores.   The more product a store buys from a supplier, the lower they are able to negotiate their prices on those products .  Assuming that both types of stores are working on the same profit margin, the store that was able to negotiate the best price is also able to sell at a lower price.  If you believe that stores compete on price alone, then this would be true.

There is so much more than just price though.  Customer service plays a huge roll in any business.  I don’t think there is anyone that hasn’t had the experience of going to a large chain store to purchase something, had a question or problem and could not find anyone to talk to.  Or worse yet, couldn’t find anyone that knew what they were talking about.

This is where the independent stores have the opportunity to excel.  Customers want to feel that they are important to you and that they matter.  You need to be able to demonstrate your knowledge of the products you carry (and maybe some you don’t) and your willingness to share that knowledge with them.  Because you have a smaller customer base, you have the ability to develop relationships with your customers which is what will keep them coming back.  Your customers need to be able to trust you.  If you do not have what they need, offer to get it for them if you can or refer them to someone else, preferably another small independent store.  Be sure that your customers know that you are there for them no matter how large or small their purchase is.  A small purchase today could mean a larger purchase tomorrow.

So, my answer to the question “Can small independent stores compete with large chain stores?” is absolutely.  What’s your answer?

There are many different business networking organizations.  The one I’d like to discuss today though is that of the BNI.  This organization was established in 1985 by Dr. Ivan Misner of San Dimas, CA.  His philosophy is “Givers Gain” and his mission was and still is “to help people increase their business through a structured, positive and supportive word of mouth marketing program”.

One of the unique features of this organization is that they only allow one person from each professional classification to join a chapter.  By doing this, when individuals in the group are in a position to recommend someone, there is only one person to recommend.

The BNI is very committed to what their goals are.  They hold weekly meetings and their meetings are strictly business.  They are very structured and designed to accomplish the maximum amount of business in a very short period of time.  I believe their meetings are about an hour long.  Each member is required to be in attendance with just a minimum of absences allowed.   It is also important and required that the same person from each company come to these meetings as it helps members to remember names and the business associated with those names for when they have the opportunity to refer.

These are the primary reasons it works.  Everyone that is there is very serious about the program and making it work.

The BNI and its members keep track of all of their referrals and the amount of money that referral brought in.  They also keep track of where the referral came from all of which is reviewed at each meeting.

Also, at every meeting, each person is required to stand up, introduce themselves, tell what they do and what it is they need from its members that week.  By being specific with their needs, other members of the group can and will be on the lookout for just that.  This type of weekly communication also helps everyone commit to memory who the members are of their group, thus making it easier to refer people when the opportunity arises.  If you speak with individuals that belong to BNI, you will know why it is so successful.  They are excited about their group and believe in what the group stands for and are confident that they will gain business from it.  There is also the satisfaction of being able to help another member of the group by referring someone to them.

There are many different networking groups out there to suit many different needs.  The BNI is a very effective group.  It would be worth checking into to see if it meets your needs.

We’ll discuss other networking possibilities in the future.  If there is a group that you would like me to look into for you, please don’t hesitate to let me know.