How does a small business compete with a big one?

You say one thing you’ve evolved to do is ‘catering to different people’, that’s very possibly your point of difference. A large chain isn’t going to offer that individual, targeted service. You have to do something different and better than the chain. You may not be the cheapest, but if you go out of your way to make sure you stock things the communities in your immediate area want, you can still attract business. I hope you can stand up to this large chain. Over here, and I’m sure in other countries, huge businesses dominate and annihilate small businesses and it’s not to our benefit. We lose diversity and options. The small guys can’t compete on price, but I’d rather go to great local butcher or greengrocer who stocks a range of locally produced product that Woolworths where I can.

My dad is a smart businessman when it comes to knowing what people want to buy but he never was interested in opening up different locations because he thinks it’s more stress. Now look what happens. The only thing going for us is our “famous” restaurant and it’s not even really ours, it’s my aunt and uncles but people shop and eat so it brings customers.

Just makes me a bit sad. I hope we aren’t out of business.

All you can do is do what you do well. You said your dad knows what people in his area want to buy, that’s gold. A lot of people don’t want to shop at large supermarkets. If your dad had his store in my area, I’d shop there if I could see the owner was trying to meet my needs and community needs. What about doing up some signage encouraging people to let you know what they need and want? “Don’t see it on the shelves? Let us know and we’ll find it for you”. Get in touch with local community leaders and talk to them about the specific problems, needs in your area. How can you help to resolve those needs? So if you’ve got a large Chinese community, what sort of problems do people have? Are there any people who need specific help? Can you do home delivery for those with disabilities? Can you offer a phone and pick-up service? Where busy people can phone their order ahead and it’s packed and ready to go when they arrive?

You’ve got two choices – throw in the towel or fight. It’s not certain the chain will put you out of business.

We will see. It’s a rumor but no confirmation. Not my business, it’s my parents. They are getting to the age to retire though…but probably planned to leave it to my brother. My brother just graduated business college and is interested in changes so I’m hoping he can save it. He’s been the “baby” so he’s spoiled and stuff but I’m hoping he can put the work in.

It might be the making of him! I hope it goes well. Do let us know. You have lots happening this year.

Service, service, service.

The chain store might be able to provide lower prices, but if your parents’/brother’s store provides individualized personal service that the chain cannot, many customers will prefer the service.

On more than once occasion I’ve had a customer tell me they would rather come to me and receive outstanding service than to my competitors, who had lower prices, but were lacking in service.

You could find out what products the chain will offer (go scope out an existing chain store), and offer specialty items it won’t carry that your customers would like. (Trader Joes does this in competition with regular grocery stores.) My guess is that the chain won’t have organic foods, so if there’s a market for that, carry those type of items.

You could also explore advertising the new items you’ll be carrying, with the idea of attracting new customers. Also work with your aunt and uncle to create a “frequent shopper card” (such as X number of purchases gets the customer a free item or meal).

Two big problems with the big chain store coming into town. One, the chain might be able to undercut some prices, especially if you live in a state that allows loss leaders. That can be difficult for small stores to compete with. Two, the large store might have a wider variety of Asian products.

One good thing is your parents are right there listening to what the customer wants. The chain store has to rely on comments getting back to the buyer, which doesn’t always happen very effeciantly.

The way to differentiate is the service your family and the employees provide, and to differentiate by having products the big chain doesn’t have. Possibly, your parents will cater more and more to other ethnicities. Is your family’s store called an Asian market, or is it called an international market?

I used to go to a local hardware store sometimes even though Lowe’s and Home Depot were both within 5 minutes of the hardware store. The people there knew their stuff, were very nice, and it was on the way to my gym.

Don’t get too worried. Many of your regular customers I’m sure will continue to come.

Your parents might feel a dent in their business, especially the first couple of months after the new store opens, but I really doubt it will put them out of business.

It indicates an Asian store not international even though it kinda is. Funny enough the new grocery store coming has the word international but it’s mainly Asian stuff…..

my bro did go to their store which is on the other side of town and our prices are still better. They already have business in the same city but it’s just on the other side…

I think my dad needs to get out of his old ways and comfort zone. But he’s ready to retire probably in a few years. Long story but he also is held back by his family and paying for their stuff (my dad owns property near the building where he takes care of a lot of his side of the family and where they live which I feel hinders the opportunity to expand and make a plaza).

If your prices are lower the customers will notice. If your parents are close to retirement that’s another reason not to sweat too much, except to say if you or your brother was thinking about taking it over one day that should be considered. It’s nice to have a family business that can be passed down.

If your parents were going to sell the store when they retire then it’s much better for them if their profit stays high so they can get a higher prices for it.

It sounds like they can easily add more Latin American or African products and re-niche themselves again if they have to.

Also, a couple I think they may have going for them.
1. Personal attention- we help customers, we build relationships with them, help them carry big things out to their car, etc. but of course price will usually win.
2. The restaurant next door is really popular and gaining more and more customers. As long as it is there we don’t worry because it brings all kinds of people in.

Just a thought. We have the space to make it bigger and better, we would be able to have bigger varieties to compete but my dad is set in his ways. Like I said, retirement lol.

And if they’re planning on one of the family taking over the business, they MUST have an attorney prepare the documents necessary for that to happen.

Lol @snowberry my dad hints he wants us to have jobs and not own a business. Even though my sister owns a daycare (2) and does wayyy better than all of us haha.

@chelle21689 The personal attention is a huge plus.

Can he rent out the space you say he could expand into? Maybe a restaurant? Or, nonfood items for the kitchen. Like sell tortilla makers, and the special tortilla holders for hot tortillas, and the special
pand to make tortillas, and woks, chopsticks, sushi knives, and other specialized cooking items. Or, even a party store that has international items in it. A place that would help increase business to your parents place because it can work hand in hand.

The formula is fairly simple—on paper. Just provide a product or service which the big operation either does not or cannot. Picking a high-traffic area helps as well, but that can be an expensive proposition.

There has never been a better time to reevaluate your business plan than when a major new competitor comes into your market. Your whole family should take a trip to the competition across the town and spend an hour or two there looking over what they’re selling, for how much. The bigger brands are very good at merchandizing (knowing what to cary, and how to place them in the store to maximize sales/revenue).

Look at the items they’re featuring on endcaps or displays. Obviously eye-level is best real-estate on the shelves. Are there certain products they seem to be pushing that you guys aren’t? Take notes (literally), there are probably good reasons why those items are being featured (good margins, high demand, etc.). Are there gaps in their offerings that you can fill?

I remember reading that one of the best ways to find a location for opening a new store is to look for new Starbucks location. They spend crazy money every year on teams that crunch the numbers to find the most profitable upcoming locations. Any business owner can take advantage of that hard work by seeking out new Starbucks locations and opening up something close by without spending the millions of dollars on market research. It’s the same ideal with scouting out your competitions offerings and merchandizing strategies.

Another angle is to explore networking with the communities you serve. For example is the local Korean community having some event? Offer to donate $300 worth of [Some type of popular Korean food] that will be a big hit with the crowd and give you good visibility to that community. Use social media to your advantage. Pump up the supporting local angle. The big brand’s messaging will be slick and artificial corporate-speak sounding. Consumers resonate with honesty and authenticity.

No matter how you slice it, it’s going to cut into your business. You’ve been in a well-protected niche in the market. With a major competitor coming in, you guys will get crushed if you don’t start getting very serious quickly. Use it as an opportunity to innovate and rediscover yourselves.

“Take notes literally” once you exit the store.

Yeah I think we have a really good location. It’s busy, right off the freeway, and easy access.

My dad owns all of the property. Like I said, I feel we could make the building bigger or renovate for space.

@chelle21689 Maybe you will make it bigger one day! :) I understand your dad’s reluctance. He’s fine with the size and it seems like he makes enough money how it is. Why have more headache if he’s currently content?

Agree with @gorillapaws. You could also consider taking special orders, such as having your relatives in the restaurant next door making kimchi for a Korean festival, etc.

No not me. Lol. Wishful thinking is my brother will take responsibility and grow up. He’s just the typical spoiled baby boy that barely works.

Also what’s up with people on here thinking I have a big Korean community in my town? Lol.

My parents aren’t worried at all. He thinks there’s enough to go around, we have good service by being readily available to help find things and carry things or listen to wants, we are a “quick stop shop”, our prices are good, etc. he thinks that it won’t put him out but even if so he’s already taken care of us all and that’s that. He also pointed out many other Asian shops that are smaller that are still in business even with the bigger Asian stores open all around them after many years. Example there’s a Kroger, meijer, and a Walmart all within 5 minutes or less from me. I go to all three because of different needs, depending which is closer at the moment, etc. I just hope he’s right… That the store doesn’t die.

Like I said the restaurant is what is the main attraction. The food is damn good though and many people can’t make Thai as good.

I am not trying to add this to my list of things to worry about.

@chelle21689 I don’t “think” you have a big Korean community. But I mentioned kimchi because it is a specialty item that would be appreciated by those who like it, especially if it’s well made. There’s an art to making it, just like many foods.

@chelle21689 I wasn’t singling out Koreans, it was literally just a completely arbitrary example of an asian community. I could have just as easily said Chinese, Japanese, Thai, etc.

Also, your revenues will likely go down. It may not be enough to close your doors, but in your example of the Kroger, Meijer and Wallmart, wouldn’t the revenues of the other two increase if one of them went out of business? There’s a lot that can be done for very little money that might make a big impact on your father’s business. I personally think the “keep doing things as usual” is a bad/risky strategy. I’m not saying you’re doomed, but that your family would be better off using this as an opportunity to figure out how to improve things.

Yes, it will take some business away but hopefully not enough to struggle. I think my parents, like I said, have saved over the years and have other forms of income to not worry since we are grown. That’s why they don’t care to change it much. Whoever gets it whether it’s handed down or inherited or sold Im sure there will be major changes.
Thanks everyone.

Also, many Japanese as well as just plain folks like it too. It might work. Or don’t.