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Differentiate or Die

Yesterday I had the good fortune of dining with my friend over at a local Ice Parlour, while we were enjoying the tranquil views and enjoying some great ice cream we discussed how the food prices were going up even for basic goods. My friend, Yusuf Bulbulia has substantial experience in business and has many contacts in the food industry. He related a story where a business owner who makes pizzas for various food outlets is now closing his doors. His reasons were startling, over the past year the average price of food products has gone up by 20%, the common ingredient in pizzas being:

Wheat (used in flour)
and fresh produce i.e. tomatoes, cucumbers and cold meats

Have all gone up by a startling 20% in price. However, the cost of energy i.e. gas and electricity up from last year, his profits have taken a drop by a huge 60%.

Sadly, he couldn’t pass these costs on to his suppliers as they too have been struggling hence he took the decision of closing the business before encountering further losses. One possible solution may have been for him to differentiate and offer value over price, rather than solely competing just on price. Business owners need to project a long term vision to how they are going to offer their products or services without compromising quality and price, being the lowest on price can not be a great unique selling point (USP)

So ask yourself how would you differentiate in your business?
How are you bringing in value to your industry or organisation?
What one key process or activity differs you from your colleagues or competitors?

I believe, this difference does not have to be huge, even a modest 5% to 10% of a difference can set yourself apart from others and draw in more clients or rewards for yourself and keep you from shutting your doors or making your career into a dead one.

Yours, Hanif