Open Coffee Shop-Differentiation Strategies You Can Adopt Now
If you plan to open a coffee shop, the process of opening one is not difficult at all. The most difficult work is done on the planning stage, specifically on the ways of differentiation. As the marketplace has becoming more competitive, you need to consider a few proven methods to differentiate. These are differentiations in terms of quality, experience and price.
The first type is quality differentiation. You make your coffee shop stand out by offering quality products. This is a good way to convert existing customers into fans and also attract new customers to come. For ths to be effective, you need rigorous quality control at every step of the business.
That means from checking the sources of your products to managing the systems, motivating the staffs and right down to the equipment you use.
For this differentiation to work, you may need to have unique or unusual sources for your products so that you are not competing closely with other shops who share the same suppliers. Researching suppliers may be the best method for this type of advantage, unless you have specific talent to develop your own products that will make your shop stand out.
Next, the model for experience differentiation works well for customers looking for unique experience. There are a lot of customers looking for a place they can relax and have a good time with. The food is not that important compared with the unique experience. Some coffee shops offer some merchandise for the customers to buy while they are enjoying their cup of coffee. To create an unique environment, you must be willing to invest in the beginning.
The last model, price differentiation is the worst to be in. You only consider this model when there is no other differentiation model you can adopt. Basically, you are selling based on price alone and nothing else. That means you are nothing special compared to other coffee shops and hope to profit on volume. It is not easy to do since many customers want something special and willing to pay extra for it.
When you are competing based on price, there is not much profit left for other marketing efforts. It is only a short term measure to capture market share until you have enough funds to create other unique selling propositions. It can also work if you are tight fisted about your expenses and still have a lot left for branding.
Are you planning to open coffee shop? It is actually easier than you think if you know the specific things to look out for. However, if you have a solid coffee shop business plan, things will be easier to implement.
