Why is your product better than that of your competitor?

This is a question that each of us in business should be able to answer without a moment’s hesitation, but each time I have asked someone they have stumbled.

So what makes your product or service different?

Here are six ways your product or service could be considered superior to your competitors:

1. The product. Areas in which you can differentiate your product from the competition include:

• The product quality;

• Being able to customise your product to suit the needs of the client;

• Bundling various products together to be more economic;

• Being able to clearly communicate the benefits - that is, “what’s in it for the client”.

2. Price. For example, Virgin was the first company in Australia to offer low interest rates on its credit cards.

3. Support and after-sales service. Lexus motor cars have made vast advances into the luxury car market by providing (and standardising) their exemplary support and after-sales service.

4. Personnel. You may only hire staff that have certain qualifications, thus ensuring a professional (and consistent) level of knowledge to assist clients.

5. Distribution channel. The distribution channel you use may provide cost savings, convenience, and/or will ensure the quality of your product when it arrives.

6. A strong brand name. There are some examples of brand names that are so strong that they are regularly used in place of the product name. For example, ordering a Coke, instead of a cola; putting on a Band-Aid instead of putting on a sticking plaster.

Take some time to consider carefully what you will say to someone when they ask: “Why should I buy your product instead of your competitors?”

After all, if you don’t know why they should choose your product over someone else, your potential customers certainly won’t know.