Market Saturation and Your Business
When starting a business, you want to test the market to see if your business has the potential to survive. You will need to look at the industry you are interested in and the competition. Check the variables and what spending you will need to do. This is very critical to a new company. You do not want to be over your head in debt just starting a new career. And when your business has begun, it is very important to keep up with the growth patterns of your company.
How to Keep Up With Market Share
Market share simply is the percentage of an industry’s sales that a particular company owns. Typically, it’s calculated over a period of time, divided into yearly and quarterly sales, and separated into national and regional sales. Market share gives a company an idea of its revenue compared to the overall industry and its competitors.
Market Saturation happens because when a specific industry is no longer generating new demand for certain products or services. This can happen for certain reasons; including increased competition, decreased customer for the need of the product or service, or because the product has become absolute on the market. And it mainly means that there is very little room in the market for growth, but that is not always the case.
Strategies to Succeed in Market Saturation
Just because market saturation can mean the inability for your business to complete, doesn’t mean that there isn’t a need for it. So be creative and find ways to stand out in the competition. Here are a few steps:
• Pricing: When it comes to pricing, you can either cut your prices or have the higher end of the option. Both can be a little risky. Cheaper can show that the product or service is cheap or lower quality.
• New Inventory or Inventory Improvements: Clients get very excited when there is a new product in your business. Keep them updated and running well.
• Add on Services: You can add on services like something free with the service you offer. Offering 2 weeks free for some services to give them time to try it out works great too. And offer ‘no commitment’ if they do sign up to a service if that is acceptable.
• Great Customer Service: Your customers will always be loyal if you go above and beyond. Even if they terminate your service right now, but had great customer service, there is a higher chance that they will come back to you then to another company that did not.
Market saturation may sound scary, but don’t be afraid to go head to head with your competition. Get creative, stand out, have competitive prices, and make sure that your customers know that you are always there.