Competiton

[el duder]

"he is selling it cheaper, but with less service."

Do you mean, you offer A,O and DP. He only offers A and O?

exactly.

[_V_]

i have found a direct competitor to my product.

he is selling it cheaper, but with less service.

im selling mine at a bit more markup but with an extra service.

he already has a share of the market, and word is spreading about him.

i have nowt, cause ive just introduced mine to the market.

what do i do?

LOL.

[Daywalker]

[oraclesmith]

i have found a direct competitor to my product.

he is selling it cheaper, but with less service.

im selling mine at a bit more markup but with an extra service.

he already has a share of the market, and word is spreading about him.

i have nowt, cause ive just introduced mine to the market.

what do i do?

Is it the sort of thing where the extra service is valuable to the customer ? If he's doing better than you then clearly not. If you really want to compete then drop the price AND provide better service. You'll have to do this to get a hold on the market, then you can increase prices over the long term. Don't expect to make a quick profit though. Alternatively, find some new added extra which you could provide your customers at very little additional cost to yourself - eg. a membership club or something.

[Xenophon]

"he is selling it cheaper, but with less service."

Do you mean, you offer A,O and DP. He only offers A and O?

Discount your HJ offering and maybe involve a friend to add 'party' services. You could also increase the take-up of your BJ service by making it BBBJ.

HTH

[ChimpMaster]

If the market isn't big enough for one more competitor, why are you in it?

The idea of business is generally not always aim to create a new market (as this is very difficult) but instead to take a share of an existing market. I.e. there has to be enough business/clientele for all to go around.

[Paddy]

Selling at a discount is a mugs game. Find a product and service that you can sell at a premium. It works for me . If you have a small shop you can’t compete with Tesco’s on price; you have to retail differently with flexibility.

[Ardesco]

Or you could purchase the Ardesco Competetor Removal Service for a measly £20,000 cash in hand.

He will suddenly become unrealiable (Not turning up/answering the phone), and he will stop looking for new business. In fact for all intents and purposes he will no longer exist.....

[TheMonkey]

You could enter a profit sharing agreement. That works wonders if there are two major competitors in a market.

[Andyw]

Oh I can just see it now....(six months later) Hi Everyone remember me ?it's El duder here... Well i'm back on this IT contract in Holland.....