Short talk by Brian Tracy arguing that the primary determinant of prices, salaries, and business success is marketplace competition. He advises thoroughly researching competitors, learning from successful rivals, positioning your unique strengths, and using competitive analysis to set pricing and marketing strategies.
To be successful in business, you have to study your competition. You see, in our commercial society, competition is a fact of business life, regardless of whether you work for an organization or whether you work for yourself. Price setting, either as a part of salary negotiations or a marketing strategy, is a good example. How would you answer this question? Who determines the prices you charge or the salary level you receive in your business? Would you point to your level of sales or your market share or perhaps your years of experience? Now, many people would say that their customer or employees set the prices. Others would insist that they set their own prices. In fact, all of these are key determinants of your ultimate professional or business success. But the primary determinant is none of the factors mentioned above. It is actually your competition in the marketplace that sets your prices of all kinds. You see, you have competition whether your company sells its goods and services in the open market or inside an organization where you are competing for advancement or scarce resources. For this reason, it's essential to thoroughly research your competitors and know them as well as as you know yourself. How many people in a competitive market situation make the mistake of dismissing the competition? The smart competitor does not look down on the competition or find fault with them, or criticize them or make light of them. Instead, she respects her successful competitors and makes it her business to study and learn from them. Sometimes learning from your competitors can make you rich. Once you've determined what it is that you do better than others in your career or business area, look outward. How will you position yourself or your product or service in the marketplace to capitalize on your personal and business area of excellence? What sales and marketing strategies will you adopt to promote what it is that you do better than anyone else? Now, based on competitive pricing strategies, how will you price your products or services? Maintain the broadest possible scope when you are conducting research on what the competition is doing. For example, if you are in business for yourself, you may find that in some instances the competition may not be another individual or company. You may find that you are competing against what appears to be another industry completely.
