What's your unique selling proposition?

I find that many business owners struggle with establishing their unique selling proposition (USP). This is partly down to the fact that they cannot encapsulate what makes them unique. It is also because they lack the clarity themselves

In simple terms a USP is a unique and sustainable competitive advantage. The simple questions you need to answer is “why should someone do business with you”?

It’s the thing that makes you unique in the eyes of your potential customers and which motivates them to buy from you rather than from your competitors.

Many businesses see themselves as unique, but it’s not enough simply to have a unique feature. Few businesses are in the fortunate position of being the only supplier of a particular product or service and even then you still have to convince people that this is a product or service that they want - only the most traditionally-minded are likely to want to buy a manual typewriter!

Depending on your sector, it may be difficult to find a USP relating to your product. Your business may be commoditised and offer products which are relatively indistinguishable from those offered by rival businesses. One point I would make is that it’s very difficult to create a USP on price alone. Try to be the cheapest and there will always be somebody cheaper, so you’ll find yourself constantly competing on price. This becomes a race to the bottom. It’s not unique, neither is it sustainable. But, yes, it is competitive, until you run out of money. If you are Tesco, Amazon or Primark then the strategy might work. If you are a small business, then think again.

Not only that but this strategy is likely to be counter-productive in a number of ways. Too cheap a price suggests to many customers that the product lacks quality, and those who do buy will desert you as soon as a better offer comes along.

If your product itself is not distinctive, and you’re not the cheapest, how can you build a USP? What you are aiming for is for both your team and your customer base to be able to explain quickly and in a few words exactly what you offer. Everyone has a story, so what’s yours?

Maybe you have a new product that will fill a niche in the market. Or maybe you can point to a unique aspect of your service delivery. Whatever it is, remember that before you can lay claim to a USP, you have to know your customers and what is likely to appeal to them. Without that vital component that makes them want to buy from you, all you’re left with is something that nobody else does because nobody wants to buy.