Franchise Goal Setting Part 6: How to Compare Your Franchise Brand to Competition

As a franchise owner, it is important to know what’s going on in the market and who your competition is. 

With so many brands out there today, having your finger on the market's pulse is essential. However, there is more that goes into it than you might think. 

It is key to compare your brand effectively to help grow your business. Here are five ideas to keep in mind when stacking your franchise up against the competition. 

Consider the Services Offered

It’s important to know who your competition is and really understand what they're offering. A business you think may be a direct competitor may not be offering comparable services, so you have to know what they're offering and for what costs.

“You have to truly make sure that you're comparing apples to apples and not apples to oranges,” said Hounds Town USA CEO Jackie Bondanza. “That takes a lot of research and diligence to narrow it down.”

Analyze Pricing

If you’ve determined a brand is offering comparable services, you should start looking at pricing. Compare service costs as well as investment costs for franchisees. 

If your products or services are very similar, this will give you a chance to find out if you should be charging more or less. Find the most common ground and analyze from there. 

Understand Your Consumers

Understanding the market and what consumers are looking for is essential when comparing your brand to the competition. Research what your demographic is looking for, such as what they are willing to pay or how far they are willing to travel, to better understand where you stand among other franchises. 

These factors are all pieces of the puzzle and can help ensure that you're setting yourself up correctly to enter the market with the best advantage, noted Bondanza. 

Keep an Eye on Competitors’ Online Presence

Keeping up to date with how your competitors utilize technology can help you stay ahead of the curve. 

Consider how they are wording things online, whether or not they have an app, if they allow consumers to book online, and if they are utilizing technology in a new way that could benefit you. 

You can also examine their social media presence and how their audience responds to what they are posting. 

Protect Your Brand

Above all, focus on what serves your brand best. It might be tempting to offer a service just because competitors are, but it is important to assess all the factors beforehand and determine what is right for your business. 

“We try not to be reactive to what our competitors are doing,” Bondanza said. “We always want to know what they're doing, but just because they're doing something that doesn't influence us to do that.”