It’s already tough enough for every remodeling company owner to stay afloat. To succeed above and beyond simply surviving and genuinely growing is a different ballgame. It doesn’t matter what your business supplies or how good it is; you’ll always compete with comparable companies in your industry.

You must be better than your competitors in order to survive. How do you keep your competitive advantage over time? It’s essential to know your unique selling proposition and keep it.

What Is Competitive Advantage?

A core competency is a distinct set of values or characteristics that distinguishes your remodeling business from others in the same sector. For example, offering the best quality product or having the lowest price are two potential advantages. The primary reason many homeowners would choose your product or service over your competitors is that you have a competitive advantage. If homeowners don’t think you have an edge, they won’t have a compelling reason to stick with you, which is why determining what constitutes a competitive advantage is so important. It’s not simply about how you’ll keep operating as a company in the future; it’s also about positioning yourself as the industry leader.

How Does Competitive Advantage Work?

The next question isn’t only how you’re going to explain your competitive advantage but also how you’ll keep it going forward. It’s not as simple as creating a competitive advantage out of thin air, as appealing as it may be. You can’t just drop the prices of your items to become the most cost-effective among all your rivals. It can harm your earnings and chances for expansion, not to mention your existence. The objective isn’t to simply attain a competitive advantage; it’s to create one that can end. The following diagram shows you the steps involved in defining and maintaining your competitive edge:

A competitive advantage is formed via a sequence of events. The illustration above shows how a competitive advantage evolves. Let’s look further to see how each stage leads up to the creation of competitive advantage and how that advantage may be expanded to help your renovation company succeed:


Your company’s capabilities are defined by how you deploy your resources to meet market needs. The number of countertops and showroom personnel you have and the cash you have will determine your company’s abilities. Your resource management will decide how many people you can serve in a particular region and within a specific time period.


Your company’s assets are its physical assets, people, and organizational capital. It is your resources that shape your firm’s operations and commercial activities. Let’s assume you own a countertop company. Your resources, including your showroom staff and the money in your bank account, are all interconnected.


A well-run company will establish a strategy based on its resources and capabilities. A method might, for example, include the following aspects: using the countertop company as an example, how big an area you service, how you manage your designers, how much money you charge per project, and when and where you provide your service. What if you can’t charge the cheapest rates compared to other countertop services near you, or you don’t have enough designers or counters available to give services with market share?

Competitive Advantage

When a strategy is well constructed and put into action, it should succeed. When a company strategy succeeds, an competitive advantage should be created. In the taxi cab scenario, your competitive advantage would be that you provide a service in a revenue growth area where many other competitors cannot do so.

Sustainable Competitive Advantage

If a company’s character, distinctiveness, and some other characteristics allow it to gain a competitive advantage while it is still effective, then it may be able to grow its business. As people get more dependent on your countertop service from one location, for example, your company will become known by everyone as the best option for homeowners. Your competitive advantage will become a part of your brand. McDonald’s, for example, is a great real-world case in point. They were one of the first restaurants to offer “drive-through,” allowing customers to pick up their meals on the move — a service that previously didn’t exist. As a result, the brand “McDonald’s” came to symbolize “quick food,” and it soon established itself as a competitive edge over its rivals.

Core Competence

As previously discussed, if another countertop company copies what you’re doing, you might lose your edge. You can take steps to improve this competitive edge by recognizing and identifying it as a source of strength before anyone else.

If your competitive advantage is well-established and long-lasting, it will be tough for other businesses to compete on the same level. It will become a core competence if your competitive edge is valuable, distinctive, and difficult to imitate with digital commerce.

Primary Competitive Advantages That Will Help You Develop a Long-Term Competitive Edge

1. Quality of Products or Services 

The fundamental objective of running a business is to provide a product or service. Regardless of what you’re offering, you’ll be competing with others for customers. With cost leadership, delivering high-quality items and services may help you gain customer confidence.

2. Standing Out

It is not necessary to have the most effective product on the market in order to stand out from the pack. While attempting to develop the finest product or service as a countertop or remodeling company owner, you may run into issues such as restricted resources, bandwidth, or competence. That, however, does not imply you should give up. Consider the following: You have a fantastic product, but no one understands or appreciates it.

There are no restrictions when it comes to attracting attention. With a well-thought-out strategy, you can set yourself apart from the competition. You may discover that creating a distinctive social-media presence, getting involved with and assisting your community, or staging social events appeals to potential customers by taking the time to get out there and interact with people and provide feedback.

3. Affordable Prices 

There are a number of things to consider when it comes to pricing. Knowing what you’ll be competing against may give you an edge. One of the most important considerations for homeowners when deciding which products or services to purchase is pricing. Customers are unfamiliar with the level of a product or service when they’re purchasing it for the first time, which is why pricing is always an issue. Customers can only evaluate the quality of their purchase after it has been delivered since they don’t know what to expect. You’ll have an advantage in attracting and retaining first-time and referral customers if you can give higher prices without sacrificing quality.

4. Customer Service

People will always remember how you made them feel. Regardless of what you’re selling, you must greet clients with warmth, charisma, and respect. Every encounter is an opportunity to develop valuable relationships with your customers that might lead to brand devotion in the future. Customers are more inclined to return and recommend a company that provides excellent customer service. They will also tell their friends and relatives about the business, which is particularly important in these economic recovery times. Customer service is closely related to the ability of a company to attract clients; as such, devoting time and resources to improving it may help you stand out from the crowd.

5. Pivoting and Responding to Customer Behavior

You may provide a better customer experience when you know how customers behave and develop trends. The world in which we live is ever-changing, and it’s changing even more than it used to. It’s possible to stand out from the crowd by understanding and to react to both customers’ needs and demands.

While you should strive to be exceptional in as many areas as possible while running your kitchen and bath business, focusing on your unique edge may assist you in gaining an advantage over the competition.

There are three critical competitive advantages to consider. These include cost savings, distinctiveness advantage, and focus advantage. All three might help you establish a long-term competitive edge.

Cost Advantage

A cost advantage is a difference in price between your and your competitors’ goods or services. You charge your clients a lower rate than that of comparable (or equivalent) quality companies for their products or services.

How can you offer this service at such a low cost without compromising the quality of your product or service? Some companies will cut employee wages to offset expenditures and reduce their goods or services prices. They may provide non-economic bonuses, such as stock options, to make up for their lower salaries. The cost savings that can be achieved by purchasing in bulk to minimize manufacturing costs allow businesses to decrease their prices as they expand. It’s why big businesses like Walmart are able to offer lower prices on a lot of their products than smaller, family-owned firms are able to.

Differentiation Advantage

The term “differentiation advantage” refers to the unique service your company can provide to its customers above and beyond price. You could be one of the few (if not only) companies in your industry to exclusively utilize sustainable and environmentally responsible materials, or you may have the most feature-packed product on the market. The higher the quality of your product, the more money you may charge. The distinction between you and other businesses in your sector not only sets you apart from them but also allows you to charge a premium price. Product quality and originality, as well as customer service and branding, are all examples of differentiators.

Focus Advantage

The goal of obtaining a concentrated advantage is to find a highly specialized audience and exceed everyone else in terms of what you provide them. The objective is to concentrate on a niche that larger businesses are unable to serve. Local banks, for example, will frequently focus on local renovations and offer them more personalized services and benefits that large banks are unable to (or do not bother) provide.

Reasons Why Defining Your Competitive Advantage Is Vital for Your Remodeling Business Success

If you want your firm to flourish, you must first identify what sets you apart from other businesses and how you plan to maintain your competitive advantage over time. The following are three of the most important reasons why defining your competitive advantage is so vital:

Provides Distinct Quality

With a competitive advantage, you exhibit one feature of your product or service that will catch consumers’ attention. If your competitive edge is maintained, it will be linked to the quality of your product or service with an online storefront.

Distinguishes Company From Other Competitors

The more distinctive your firm is from the competition, the more new homeowners it will attract and keep loyal to your brand. You’re not giving customers an incentive to choose you over others who provide comparable services or goods unless there’s something unique about you (and their own competitive advantages will be enhanced as a result of you not having one).

Contributes To Brand Loyalty And Image Recognition

Clients will have no motivation to continue utilizing your product or service if you don’t provide them with a competitive advantage. They may simply test out the competitor’s solution because they don’t know what makes yours distinct. They may not remember your local companies once they’ve acquired your products or service since they didn’t stand out from the crowd. With a competitive edge, you’ll increase brand loyalty and brand image comprehension.

Ensure Your Marketing Strategy Supports Your Competitive Advantage

The effectiveness of your remodeling company’s business procedures is a competitive advantage. This includes the marketing technique you employ. Your marketing tactics must be consistent with your company’s competitive position. This can be accomplished by looking for these components:

Target Market

Determine who your target competitive market is. Your competitive advantage should cater to your target market, and your marketing efforts should assist in the recruitment of users from this group. You won’t have much of an edge if you’re targeting the wrong audience.

User Benefits

It’s not a competitive advantage unless it helps your new customers. Determine how your product or service benefits your clients. Your client benefits should be directly related to your competitive advantage. Throughout the course of your marketing campaign, you’ll want to highlight your user advantages.


If you don’t know who your rivals are, you won’t be able to say what advantage your product or service has over theirs. Identify exactly who your competition is. Remodeling companies have shown themselves to be unstoppable during the last two years by discovering a competitive edge. That is why I’m sharing a method for determining what your competitive advantage may be in a few years.