To Niche or Not to Niche?

Some promotional products distributors choose that path because it poises them as experts in a particular area.
Oct 10, 2008

By Kay Kotan, Contributing Writer

If you’ve been in the promotional products industry more than a few months, I’m sure you’ve heard about the controversy concerning whether niching is good for your business. It is my goal to inform you of the opportunities of niching and how they may affect your business.

First, let’s discover a few reasons not to niche. OK, let me come clean right here. There are no valid reasons not to niche. Period. I thoroughly believe in creating a niche in your business. Even if you have a thriving business, you can still add substantial growth by establishing a lucrative niche. Niching does not mean that you will turn away business outside your niche. It just means you will concentrate your marketing and sales efforts within a certain niche to make better use of your marketing dollars and time.

Why Niche?
The No. 1 reason to niche is to position yourself as an expert in your customer network. Frankly, there is no way to become an expert if your clients come from all walks of life. But, you can research your niche and anticipate your clients’ needs. Wouldn’t it be great to offer a solution to your client before they even knew they had a challenge? This is possible if you study your niche. By reading what your niche clients read, you will discover new trends, realize the challenges your clients face, and recognize the movers and shakers in their industry.

Once you become an expert — and thus a business partner — to clients in your niche, they will refer you to others in the same industry. While your clients are attending trade shows, conferences, networking meetings and community events, they will tell others who is helping them build their business with promotional products. They’ll do this because you have become their business partner — not just another salesman who calls on them. You have become an expert in their industry by knowing the solutions to their concerns, problems, obstacles and desired growth.

Stretching your marketing dollars is the second reason to choose a niche. Use your marketing budget to target only those in your niche. This will eliminate sprinkling marketing dollars across a broad market with little effect. Rent a booth at a trade show specifically designed for your target audience. As potential clients visit your booth, you will know your customers’ general needs before you even know their names.

Make the best use of your time by calling only those in your chosen niche. You won’t spend endless hours researching products for all different types of businesses and clients. Instead, you will have an arsenal of ideas for your niche clients because you know what they need and what works for their business.

Kay Kotan is a coach, author and trainer who teaches promotional products distributors how to build and grow profitable, successful businesses. Reach Kay at kay@kaykotan.com or visit her Web site at kaykotan.com/niches.html for a free report on the hottest niches in the promotional products industry.