Preparing to sell

There are a number of factors to consider before factors to consider to ensure success when selling a product or service.

Competition

All businesses face competition, and success is often based on how well you respond to competitors. You should be aware of your competitors and always strive to develop a competitive advantage over them.

To gain a competitive advantage, you could:

• raise or lower your prices
• improve product quality or service offering, such as modernising features or production processes
• use alternative or less common distribution channels
• negotiate better terms with suppliers to improve margins

See understand your competitors.

Market share

Market share is the proportion of total market sales your business accounts for.

It can be measured using:

• sales revenue
• sales volume

Market share is an indicator of competitiveness and profitability. Many companies aim to increase their sales compared to their competitors.

You can measure your company's performance compared to a competitor by its market share. Market share is calculated by dividing your sales by total market sales.

You can increase market share by:

• offering more value to customers, for example by improving quality or service
• adjusting pricing to increase sales, though competitors may respond
• expanding distribution channels or increasing their reach
• increasing promotion, such as advertising spend, while monitoring competitor activity

See increase your market share.

Customer base

The consumers that buy your business' goods or services define your customer base. Consider the things you should know about them, including why they might buy from you. See assess your customer base.

Niches

A niche is a small but profitable section of a market that is often suitable for a specific range of goods or services that meet a particular need. You can create a niche market by identifying customer needs or wants that are not being addressed by competitors and by offering products to those customers

Marketing strategy

Your company needs a strong marketing strategy. It will be your marketing roadmap and a key part of your business plan. See create your marketing strategy.

Brand message

Before you begin to sell a product or service, you should ask one question of your company - what does your brand stand for?

For your brand to stand out in the marketplace it should make an emotional connection with potential customers.

You should aim to sell an experience rather than a product, for example a financial service providing peace of mind.

Read more about branding for your business.

Wholesale value

Some products are sold via wholesalers. Wholesalers buy goods from producers at a reduced price. After adding on their profit margin, they then supply the goods to retailers who sell to the public.

Most businesses will be able to sell to wholesalers, as they can provide a good way to reach many retailers at once. However, you should look closely at the profit margin you need to make in order to remain profitable. This is important to ensure you don't sell your products too cheaply to the wholesaler, who will always want the lowest possible price from their suppliers.