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Home Care Market

What do Woolworths and your home care business have in common?

It is simply this – The reason why Woolworth’s failed was because they didn’t know which part of the triangle they were sitting in.  Whenever I ask anyone about Woolworths and what they were famous for, the answer is always “pick n mix”. That’s not what they became though. They were trying to be too many things to too many people. They became ‘generalists’ which is a very dangerous game when trying to survive.

Want to know why this is relevant to the home care market?

In order to be successful in any business you need to compete in one of three ways:

  • Price – This means low price – high volume
  • Different – Competing by being different means you need to excel in the following areas:
    1. Distribution
    2. Product
    3. Technology
    4. Relationship
  • Niche – This is high price, low volume

To put this into some sort of context let’s look at supermarkets first.

  • Price – Aldi, Lidl are in the low price, high volume space.  They do this really well
  • Different – Tesco, Asda, Sainsburys, Morrisons, Waitrose, M & S are all in the different space.  The ones who win at any given time are the ones who get their distirbution, product, technology and relationship just right.  We know this is hard to keep up, which is why supermarkets fall in an out of favour with shoppers.  It is a transient market depending often on the current climate.
  • Niche – The VeganKind Supermarket would fall into this category.  They have identified exactly who their ideal client is and created a service proposition around that client.  This type of service, once a client is onboard, often provides a long-term client/service relationship due to the loyalty created.

So now let’s look at home care

  • Price – Home Care businesses that are focused on low price, high volume are likely to be going after local authority contracts.  This can be hard as you often need to resubmit tenders on a fairly regular basis.  Many home care providers have little say in the rates the local authority set, which again can be challenging, especially when home care costs are going up.
  • Different – Many home care businesses think they are different. The problem is that unless you can excel in the 4 areas above it is highly unlikely your clients will know you are different.  It is exceptionally difficult to compete in this area as a home care business. You have to be constantly aware of being competitive on price as people, will look at this when selecting your service in the ‘different’ space.
  • Niche – A Niche service is aimed at private clients.  This is nowhere near as price sensitive. However, if you are aiming for this market you need to be very clear on the value you provide. That means going through client segmentation, understanding who your ideal clients is, designing a service specifically for those clients, and designing marketing material that supports your niche service. 

If you want to be in the Niche space then you are my ideal home care client.  Niche home care businesses are able to deliver true person-centred care, not time and task care.  And because they charge more they are able to pay their professional carers more.  This really has a positive impact on the quality of care people receive.  If we really want to raise the bar in care, this is an area that needs to be focused on.

To find out more on how being Niche could help you home care business thrive, why not book in a discovery call today?

For more information on defining your home care market strategy via care package solutions click here. If you want to find out why delivering person-centred care means so much to me then read more here