
Big box stores are not the reason why mom-and-pop shops go out of business. The reason why the little guys fail is because their positioning and their marketing sucks (sometimes their merchandise and their customer service sucks, too). You can’t blame Wal-Mart for your woes when you’re not willing to suck it up and do what it takes to effectively compete against them.
Just what does it take? Imagination, work, and learning to do some things which may seem scary and new. No matter how scary or uncomfortable these tasks seem, remember this: the alternative is that you go out of business. You fail. You won’t be able to look your family members in the eye, because you’ll be ashamed you let them down. You will be even more scared when the heating bill comes, or the credit card bills.
What I’m going to ask you do will be child’s play compared to all that. So shut up about how you don’t “like marketing” and save your business.
You Can Win Against Wal-Mart
There are tons of small shops and online businesses which are thriving against the big box stores such as Wal-Mart and even against virtual big box stores like Amazon. So… if they can do it, you can, too, and you certainly can’t blame the big chains for your poor marketing. If others are succeeding, why not you? Of course you can win against the big guys. People do it all the time. Not only is it possible, it’s actually easier than you think (provided you can get over yourself—the only thing holding you back is you). This isn’t some stupid woo-woo “The Secret” bullshit. I’m going to share concrete steps with you.
Step One: Start Building an Email List. Like, Yesterday
If there’s one thing I’d burn into the brain of every business owner with a high-powered laser, it’s this: build your email list and use it to increase sales. I’m simply stunned at businesses failing to do something as simple as send a freakin’ email once in a while. The benefits are huge: you will make more money, it’s that simple.
Get an email list provider like Aweber and start collecting addresses. Then, create one email they’ll receive automatically upon joining the list. In this email, tell them that if they mention the email to you when they make their next purchase, they will get 15% off their order. This is a special thank you just for joining the list. See my previous post about email marketing for more info.
When customers come in to shop, ask them if they’d like to be notified of specials and discounts in advance. Expect them to say yes (practice with someone—seriously). Then ask them “Can you save me some postage and let me contact you by email?” Of course they’ll say yes. Have them write down their email address (make sure you can read it) or tell it to you so you can type it into spreadsheet (or directly into Aweber) Tell them they’ll receive a confirmation email, they’ll have to click a link in it to confirm they want on the discount list. Then tell them you’re going to send them a special gift just for signing up (that’s the first automatic email I mentioned in the previous paragraph).
Always ask for email addresses. Get them. And then email your list every week or every two weeks like clockwork. Your business depends on it. This is probably the single biggest mistake you’re making.
The job of your emails is get people into the store. If you remind them you exist and give them specials, they will come in more often. This doesn’t have to even be a big deal. Say, for example, a new product comes in. That’s the perfect event to make an announcement about. You write a post on your blog (I’ll get to that in a minute) and you past a link to it in an email. Send the email to your list. That will send traffic to your blog. And that will send foot traffic into your store. If you send nothing, nothing happens. As Wayne Gretzky famously said: “You miss 100% of the shots you don’t take.” So send something. You have to remember to do it. It’s your job to get people into the store.
Most big chains don’t ask for email addresses (and when they do, they don’t ask in the right way, guaranteeing rejections) and don’t do any noteworthy email marketing. By being in touch and in contact with your customers, you’ll be doing something the big box stores can’t do.
Step Two: Get a Blog and Go Crazy
If you haven’t yet read Commerce Blogging 101, you need to: it’s your blueprint for how to blog your small business. Blogging is vital. Does your local Home Depot or Wal-Mart have a blog? No. And even if they did, your customers aren’t reading it. If you get email sign ups, you’re also going to get blog traffic.
Don’t worry about technical stuff like RSS feeds. Nobody knows what the hell RSS feeds are, anyway. Growing your email list means you will send traffic to your blog. How? Simple: Every time you write a new post on your blog, send out an email with a link in it to the post. Say something like: we just decorated the store for the holidays, click the link below to see the pictures! or whatever you blogged about. Maybe something hot just arrived and you’ve only got so many in the most common size and you don’t know how long they’ll last before you can order them again. And that’s true, isn’t it? You don’t.
You will never run out of things to blog about. If nothing else, take a picture of a product and write about that product: what it is, what people do with it, what the benefits are, why people like it, how to get the most out of it. If you’re running low on it, say so, because scarcity creates purchases. And prepare to be amazed: people will come in the door and start buying it. Especially if the product is scarce or relevant to the season or a specific event, like a holiday sale.
It’s not rocket surgery, folks. But you know what? Wal-Mart doesn’t ask for customers’ email addresses. Wal-Mart’s not doing this! Wal-Mart has no personal touch, no personal contact.
They lose, you win.
Step Three: Get Social
Social networking is very strongly connected to blogging. Each enforces the other. At the very least you need to get free online accounts at:
- Flickr
- YouTube
You can use Twitter to drum up a lot of business, just like Korean Taco vendor Koji did.
So many people are on Facebook, that it just might become an alternative method for keeping in touch with your customers beyond email.
Flickr is picture hosting, and as I said in Commerce Blogging 101, you want to be taking pictures of your shop and your merchandise like crazy.
YouTube is for videos. Yes, you should be shooting videos. Seriously, it’s not a big deal. You shoot a video of a product being demonstrated or explained, just like they do on QVC, except you’re just going to be yourself instead of some weird psycho salesperson. Then, you upload it to YouTube. Then, you get the address of the video and paste it into your blog post. Ta-da! Video blogging anyone can do.
Are you going to let a little thing like a wee bit of nervousness stand in the way saving your business? Think about what’s at stake, here, and grow some guts.
The big box stores are lame when it comes to this stuff. You can completely outmaneuver and outrun them. The goal is to be tightly integrated into the lives of your customers, to have real and strong relationships with as many of them as possible. You want to be like Cheers: you want to know everybody’s name.
A few years ago, these tools didn’t have the popularity and acceptance they now enjoy. You had to be a bit of a geek to get any real leverage out of them. During that time, the big box stores had the upper hand with their big websites and their “economies of scale.” The little guys still had blogs and email marketing, but now that social networking and DIY video is easy and mainstream, it’s become the clincher in the trifecta of small business marketing: blog, email, and social media.
Step Four: Build Up Your Local Search Presence
Nobody looks in the phone book anymore.
People find stuff online nowadays through search, through that Google box. Will they find you? You can increase the chances of being found if you do a few things.
Get on Google Local Search.
When you keep writing about stuff on your blog that people in your area are searching for, post after post, you’re creating this build-up of content all about one thing; your shop and what it offers.
Here’s a HUGE search engine tip. Use this headline template when you write posts for your blog:
{adjective} {product} in {location} is/are {description/action} at {your business}!
Some examples:
- Hottest Handbags in Burlington are the New Gucci Clutches at Handbag Heaven!
- Rarest of Bog Oak Briars in Vermont is Selling Quickly at John’s Tobacco Temple!
- Cutest Imported Japanese Toys in Montpelier are Melting Hearts at Word Toy Imports!
Now, you can’t do this for every single post you write, or it gets old. But, notice how the headline template is structured to include all the right search terms. All you have to do is fill in the blanks!
This is one of the reasons why blogging is such a powerful tool for you: it makes your website into a search engine magnet.
Step Five: Figure Out Why You’re Different and Work that Into Everything
As a little “mom & pop shop,” you have no hope of competing against big box stores on selection and price. None.
Do not try. Instead, specialize. Here’s a lesson you can learn from restaurants. In most towns, national chain restaurants sit cheek-by-jowl with independent restaurants, don’t they? And over the years, you may have noticed that being a chain is no guarantee of success. In my town, for example, the Quizno’s went belly-up while the Subway stayed strong and the Taco Bell —much to my dismay—closed down years ago. But a host of local, independent restaurants are still going strong. Our local natural foods co-op recently expanded even though chain grocery stores are nearby.
Six Ways to specialize:
- Go local: feature as much locally produced merchandise as you can.
- Go green: emphasize how you’re taking steps to reduce consumption and waste; feature natural products.
- Go high end: there is always a market for the big ticket items. One thing about rich people: they’re always rich.
- Go narrow: reduce the number of product categories you sell to those not found elsewhere. Be imaginative in your product mix. For a town as small as the one I live in, we have an amazing total of four bookstores downtown! They specialize: one is used books, one is sci-fi/fantasy/graphic novels/gaming, and one is anti-establishment/countercultural (the last is the “normal” bookstore).
- Go high-touch: everyone laments the lack of customer service nowadays; show your customers what real customer service is (you’re probably not as good at it as you think you are, so get training and train your staff rigorously). Nobody’s going to get a holiday card from Home Depot.
- Go for the money: most of you are terrible salespeople. You have had little or no retail sales training. I know for a fact you can be a better salesperson and make tons more money per customer, because I’ve done it (I’ve spent many years in retail). Not only that, but you can do it in ways that make your customers love you even more, without coming off as sleazy. Do you think anyone at a big box store would get this kind of training? No! They’re terrible at this stuff. You can get good at it. Deadly good at it.
In short, the more different you are from the big box stores, the better: you don’t look like them, you don’t merchandise or display like them, you don’t package like them, and you don’t treat your customers like them, and you don’t sell like them.
Not only can you save your business if it’s in trouble, you can even thrive against the big box stores.




This is genius advice. I operate 14 self storage properties and we have begun putting some of these strategies in place and we are able to compete with the big guys like Public Storage and Extra Space.
In my experience, you can go through the pain and suffering to get proficient at the new way of marketing or die at an increasingly rapid rate. It’s not easy, especially if you are relying on retail staff to execute some of the strategies, but worth it.
As a side note, if you are able to involve your staff you are doing them a favor by familiarizing them with tools and skills that will help them in future jobs.
This isn’t the future of marketing, its the now.
That's AWESOME. A lot of people would think you'd never be able to do that
with something as commoditized and “ho-hum” as storage. Way to go!
Great post, Michael (except for the picture
I'm singing the same tune to my small, independent brick and mortar businesses over on BlogArtisans and my newsletters. It's not rocket science; but what it means is taking a little bit of time each and every day to build your online presence. You can't afford not to.
You know it's funny, until our conversation on twitter the other day, I
didn't know that was one of your areas. I've had this post in draft for
weeks! Now my readers have another blog they should check out—yours!
I used to work for an Ace Hardware store just as Home Depot and Builders Square entered town. Business was off a bit, but we brought it back with very specialized service and attention to the customer.
We figured out how to be different and delivered the “high touch” service that our competitors could not.
And what's funny is that Ace would be the “big competition” to a locally
owned independent hardware store.
Solid strategy. Local search is something a lot of people miss, and a USP/positioning strategy is essential.
People want to buy from people, and although there are some purchases that Wal-Mart will always win, there's a lot of room to become the trusted “local guy” that people are proud to buy from.
I don't know about you, but I feel a little sleazy anytime I buy from Wal-Mart.
Sure, it's a great place to buy toilet paper.
More small businesses need to be heeding this advice. This is NOT that hard to do. Great advice!
Compared to the alternative (going out of business), I should think not.
[...] titled: Beat Wal-Mart Bloody with a Blog in Five Steps by Michael [...]
Michael… Great post and fantastic blog. I’m glad I found you on the web today. I work with small business owners and I am passing on a link to your article in my blog post of today and recommending a “must follow you” to my readers. Good advice with an interesting perspective.
I even experienced a good example of a local business using email follow-up (like, yesterday) from a local networking meet-up that I share in my post.
Looking forward to your continuing posts. Thanks. …Howard
Thanks very much, Howard. I'm glad you're getting value out of what I do.
I especially like the Google Local Biz advice.
I’ve read John at Duct Tape go on about this one, and I can see it’s virtues right away for any small biz looking to increase awareness and really be at the front of anyone’s search. It’s amazing even in my little town of 8,000 how many people search for info online about this little town. Just goes to show how much internet has become a part of life.
Embrace it, or be left wondering where everyone went.
John certainly is the king of small business marketing. And even in a town
of 800 (say we even drop a zero), we'd still be searching online, emailing,
tweeting, and updating our status on Facebook. The Internet is made of
people, and people are everywhere.
That's so funny! I spent most of today tweaking a squeeze page to garner email addresses. Weird coincidence that the first thing I read afterwards was this.
Any business needs to be in the business of growing its email list, but this
case, we're specifically talking about brick-and-mortar shops.
I love it! Thank Michael. I do think that concentrating online is a sure fire way to beat, or at least keep up with, the 'big guys'
Customer service IS one of the most important steps. A satisfied customer will always return and recommend you too!
The stronger your relationship is with your customers, the more they'll shop
your store.
Michael, you ROCK as usual
I expect to see bloody noses at Walmart next time I go!
LOL. One way to get your customers to think less of Wal-Mart and get a good
laugh at the same time would be to send them to http://peopleofwalmart.com.
Fantastic post, Michael! This reminds me of Meg Ryan and Tom Hanks
All too often, people give in when up against a bigger establishment when being small can mean you're more focused on the customer's needs and problems, give a more personalized service (I like the part about knowing everyone's names) and can also offer unique products that are not mass produced. Add to that exploiting the web and you're two steps ahead.
David, thanks for the comment, but you have me puzzled. How are you reminded
of Meg Ryan and Tom Hanks?
Hi Michael. I’m sorry.
I just saw big arrogant, aloof mega store versus struggling, famous little shop on the corner that’s very personal in its service. Big wants to put Small out of business and Small keeps fighting back.
I now see how bad an example that was. It didn’t incorporate any of your strategies here for making the best use of the Internet, just a David versus Goliath situation, which, unfortunately for me, ended badly for Small and wasn’t even the plot of the movie
OK, but I still don't see what that has to do with Tom Hanks and Meg Ryan.
Did they make a movie like that or something? Sorry to be so dense, I'm just
trying to understand you.
Oh, sorry again Michael
There was a movie “You've got mail!” 1998/99 with Tom Hanks, the big mega store, and Meg Ryan, the little shop on the corner, although it didn't end well for the little shop and the plot is more romance than anything else. That's why I said it was a bad example. I didn't realize you were asking about the two in particular.
You're not being dense, I didn't explain myself well
Ah, well, I never saw that movie, otherwise, I probably would've got your
reference.
It was a bad example anyway
THIS IS EXACTLY WHAT PENINSULASHOPS.COM IS TEACHING AND BRINING TO THE TABLE FOR LOCAL BUSINESSES ON THE PENINSULA. Now that I am done shouting from excitement, I would like to say thank you! Thank you!
You're welcome, welcome!
Awesome article, Mike. People ask me all the time how they can compete against the big boys. This post answers it!
Long and thorough post there. I think the same principles hold for website owners/webmasters who feel intimidated by big brand websites.
LOL, I'm just out of touch with popular culture, I guess. That's what I get
No worries, man.
for being a nerd.
[...] You can beat Walmart 2. Personal branding? Be yourself and make an impact. 3. Be part of people’s narrative first. [...]
While I agree with your post in principle — and really like your angle and the idea — what do you say to the argument that Wal Mart wins on price? That they have the ability to undercut local business until the locals go bankrupt then raise prices back to where they were?
Don't sell what Wal-Mart sells. Wal-Mart sells cheap crap. Getting a gift
bought at Wal-Mart is not special. And even if you *do* sell the same things
as Wal-Mart, you simply don't compete on price, you compete on other
elements surrounding the transaction, like service and convenience. Price is
always the *worst* thing to compete on. Price is also not the most important
consideration every time for every person: often, value is more important.
Last I checked (though I do avoid the place like the plague — my whole self shudders) Wal Mart sells everything every major grocery store sells. They sell motor oil for cheap that puts your mom & pop auto parts store out, toys that kill the mom & pop toy store, sporting goods that limit the number of mom & pop sporting goods stores…. Even Target is to blame. Target sells some cheap crap clothing that looks good so people buy it. And these kinds of retailers are only getting smarter and providing more of the illusion of quality.
Wal Mart is an economic powerhouse that sells all kinds of inexpensive stuff, not just cheap crap. They're a black hole that sucks in money from the local economy and takes it back to they're headquarters and onto shareholders.
Maybe your niche store can make it if they're really, really smart, but they certainly can't thrive. As long as Wal Mart and places like it beat you on price for most of what people are buying (and they do), the vast majority of people will shop there.
Given the choice, people still choose price over service. They choose price over their frigging HEALTH!! That is sad, sad, sad and totally reality today.
Plus, what could be more convenient than finding lots of cheap stuff in one place where you can load up your car and drive home?
I'm not saying there isn't room for improvement and message and changing people's behavior. Might not be every time, but saying in the present tense that price is not the most important consideration most of the time for most people is just a misunderstanding of what's going on.
I don't mean to be polemic, but I want things to change. And people need to look the animal in the eye in order to beat it. A retailer might be able to overcome price, but I'm taking serious issue with your comment that “price is always the *worst* thing to compete with.”
I wish it was as simple as you make it out to be, but it's a lot colder, a lot more ruthless and a lot harder to beat.
There is a toy store on the main street of my town that is doing just fine
against Wal-Mart. Auto parts stores sell *way* more auto parts than Wal-Mart
sells, and motor oil is not enough to make a difference. The fact that some
small toy shops and make and some don't has little to do with Wal-Mart, and
much to do with the ambition and imagination of the shop owners.
And convenience is relative. I could save more money if I bought certain
items at Wal-Mart, but the extra time and gas it takes to get out to
Wal-Mart isn't worth it when I can just walk downtown (or at least drive a
very short distance) and get what I need *fast*. It's different for people
who live in the 'burbs or in the country: everything's a drive for them. I'm
a townie, so that's my perspective on convenience or service vs. price.
And even though Wal-Mart has had issues with discrimination (among other
things), economies of scale *per se* are not “evil.” If I wanted to buy a
big-ass TV, I'd probably go to Wal-Mart and not feel a smidge of guilt about
it.
It baffles me that you simply pronounce that shop owners “certainly can't
thrive,” when there are thriving shops EVERYWHERE. Your statement is not
correct.
I'm sure it depends on exactly where you live, but if you need assistance with something, the last place I go to is Wal-Mart. Even if I'm buying motor oil, there's too many different kinds for me to know what's best and what the difference is between them all. When I go to my local auto parts shop they ask me all about my car and how I drive and then recommend the best product that matches my driving style.
There will always be people who shop at Wal-Mart; stop focusing on them and find out who your customer really is. Then target your marketing.
I absolutely loved your photo on the Walmart post. I used to be in the radio business in a small town and watched all my hometown clients, community boosters, etc, just decimated by Walmart. I have a special interest in beating them bloody, so your post was great. I am somewhat familiar with the principles but found some nuggets of gold to work on. Thanks, man.
Glad you liked it. Remember: Wal-Mart didn't decimate anything. Wal-Mart is
not a natural disaster that strikes the good and the bad without mercy.
People had choices, and they chose badly. This post is all about
illuminating better choices.
I absolutely loved your photo on the Walmart post. I used to be in the radio business in a small town and watched all my hometown clients, community boosters, etc, just decimated by Walmart. I have a special interest in beating them bloody, so your post was great. I am somewhat familiar with the principles but found some nuggets of gold to work on. Thanks, man.
Glad you liked it. Remember: Wal-Mart didn't decimate anything. Wal-Mart is
not a natural disaster that strikes the good and the bad without mercy.
People had choices, and they chose badly. This post is all about
illuminating better choices.
[...] Beat Wal-Mart Bloody with a Blog in Five Steps – A great blog post at Remarkablogger that details a few simple ideas for beating the big box retailers at their own game. A mix of humor and real-world examples that every small business owner should read. [...]
[...] Business blogging is harder than it looks. Business blogging is not like problogging or hobby blogging. With business blogging, your goal is to attract qualified prospects to the blog and through their interactions with you and your content, convert them into leads or paying customers. We get so desperate for any kind of traffic that we often happily accept the wrong crowd and don’t even realize it. That’s understandable: it’s difficult sometimes to understand exactly how the content we create draws the audience it does. It really is cause-and-effect, once you see it. [...]
No matter how scary or uncomfortable these tasks seem, remember this: the alternative is that you go out of business.
[...] USP is important-develop yours. Fraser took what appeared to be a weakness and incorporated it into his [...]
Thanks for sharing info. Keep up the good work…We hope you will visit our info formation often as we discuss topics of interest to you.
Great video I have never seen it before , really useful resource.
It's not rocket science; but what it means is taking a little bit of time each and every day to build your online presence. You can't afford not to.