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Three exercises to help you determine what makes you a 'unique' contractor

September 14, 2000
Have you developed a “unique selling proposition,” or USP statement? Do you know how important it can be to your sales?

This is a statement about you or your business that focuses on what makes you or your business special and different from your competition. In short, it is the one explanation that you give your customers to convince them to buy from you instead of from the competition.

In order to successfully market your products, you need a USP because:

  • It gets your prospects’ attention;

  • It aids you in advertising; and

  • It helps you guide your business.

Your USP can be used as a slogan or a phrase that appears in your advertising. But more importantly, it is a tool to help you focus on what your business is all about, and to concisely describe the uniqueness of your business to potential customers.

How to begin

The process of determining your USP includes the following.

1. List all the things about your business that makes you different from your competition. Make as long a list as you can. From this list you will ultimately create your USP.

2. Pick out which of these factors are most important to the buyer of your products and services.

3. Which of these factors are not easily imitated by your competition?

4. Which of these factors can be easily communicated and understood by your prospects?

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5. Construct a memorable message of these unique, meaningful factors.

It’s easy to figure out whether you have a good USP. If it sells for you, you have a meaningfully different selling proposition.

An example of a USP would be providing services your competitors do not. Of course, if your USP is successful, sooner or later a competitor will copy you and you will need to create a new USP.

Creating your positioning statement

This stage states how you wish to be perceived.

Who: Who you are.

What:What business you are in.

For whom: The people you serve.

What need: What are the special needs of the people you serve.

Against whom: With whom are you competing.

What’s the benefit: What unique benefit does a customer derive from your service.

So: What does this mean.

Example -

Who: John Doe.

What: A heating-cooling contractor.

For whom: Consumers who need heating or cooling.

What need: Serving the replacement market.

Against whom: Competing against other independents and a major consolidator.

What’s the benefit:

  • Selling two of today’s most popular brands.

  • Guaranteeing the very best deals.

  • Supported by expert service.

  • Seeing to all the needs of our customers.

  • All accessories including warranty options are available.

So: All customers buying from John Doe get the best deal available, great service, and regularly call us back for service.

Position statement

This states how you actually are perceived.

Who: John Doe.

What: Heating-cooling contractor.

For whom: Consumers who need heating or cooling.

What need: Serving the replacement market.

Against whom: Competing against other independents and a major consolidator.

What’s different:

  • John Doe does not advertise as much as his competitors, nor are his hours as convenient.

  • His service techs are more experienced than his competitors’, but the cost of his service is higher.

  • He stocks a lot of replacement parts, but it may be more than necessary.

So: Because of this, John Doe makes less sales, has more expenses, and generates less profit than he might otherwise.

You must carefully compare how you wish to be perceived with how you are perceived, and try to get your position statement as close to your positioning statement as possible.

You will then have a strong USP and be able to sell more effectively.

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