hopper

Here's an interesting question, I think.

In the locale that you all do business, are you peers with your competitors, anonomous, or going at each other's throat?

I ask because, today, I had an unusual demand for parts. As many of the parts I needed were for older boxes, I went shopping for used. After the state tech surplus didn't pan out, I visited a number of competitors' shops.

I chose to stay stealth, but was very tempted to introduce myself and simply touch base on issues such as pricing, "getting alot of smit fra.. or vund*?", blah, blah....things a guy or gal doesn't really get to discuss with many when they work 16 hour days.

I guess I'm a little cowardly to go stealth, I just don't want anyone to tear into me in their marketing strategies, which has happened before. Someone I didn't even know based their ads and website on my service rates (as well as the largest local company, and the largest national company)

I live in a town with perhaps a dozen viable competitors - I'm sure many of you live in locales with hundreds.

So, I'm very interested in your opinions here. Do you reach out to your competion, or do you just do your own thing and stay a face in the crowd?

Skie

I haven't met any of my local competition yet. But I have met some national/global competition. Since I do business on the internet, there are no real boundaries/distances. Those that I have met for more then a "hi, how are you" type of conversation have been curtious and so have I in return. I don't think anyone was rude or anything but unpleasent. But then, we were at a convention that dealt in our industry, so everyone was there to learn and discuss.

Outside of that, the few times that I've talked to those that are my competition, I've been friendly and willing to talk/help as needed. I've even helped a few with technical stuff as needed since they were having trouble. I don't mind helping them. Perhaps they'll remember it and return the favor one day.

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VincentWong

I would not consider the competition a friend or a foe. I think it is best to see them as an opportunity.

For instance, I have a competitor that I work closely with to fulfill orders that I am not able to meet due to short-term supply issues. We are corteous to each other and in the end we both make money (most important). They know exactly who I am and that my company is in direct competition with them, but we still manage to create a WIN-WIN situation.

I could have disguised myself as a regular buyer, but I felt that being 100% upfront was the best policy. I was fortunate that they were able to recognize that I was looking for favorable conditions for both of our companies. If you have good intentions and are 100% honest, I don't see any reason to hide your identity. If they refuse to talk to you, then you are better off finding somebody else to fill that order. Imagine how awkward it would be if they came to your store and recognized you as the guy that was "spying"! Keep in mind that the questions you wanted to ask are not the common questions of a regular buyer. There is a good chance they'll see right through the fascade.

If you anticipate that you'll have to shop at their store in the future, then I would probably start building an honest relationship with them. I am sure they will appreciate your business (and honesty).

Good luck.

Chevy

I have two or three competitors that I farm jobs to on a regular basis. They handle Macs and circuit level repairs that I don't have time for - plus they always kick back to me (both $$$ and networking gigs).

Win-Win

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“My philosophy, like color television, is all there in black and white”
-M. Python

VincentWong

As Chevy pointed out........WIN-WIN can be found even with your competition.

Nik00117

I do PC repairs on the side, i'm 17 and don't get much business. I used to do a internship with a local PC company (small one) so I used to work there. Either way this X-mas they had outsourced jobs mainly builds since repairs need to be done first. I got a portion of the profits and was good experience. I compete with them the market we deal with here is very small, but I feel being freindly will always pay off. I feel being competive is good but being mean or unplotie about it will bite you in the back.

So be nice :) and don't lie. I found it paid off in ym case.

foxxy_loxx

Yeah, I agree with the friendly attitude towards competitors. Computer based businesses need to be networked. Networking requires friends, contacts and opportunities. Take a look at the strengths and weaknesses of both you and your competitors. This should give you an idea on how to co-habitat with them.

There are more advantages with friends.

Done_Fishin

I think the general consensus here is correct, I have seen other businesses thrive because the competition work together.
Think of the benefits, if

a) you get together to agree to some pricing policy that is amenable to all. The Clients will soon realise that it isn't worth shopping around and will take their work where they get best service rather than best price.

b) you'll be able to pick up the phone and ask your neighbour if he can supply you with a necessary part .. I've seen Bookstores do this where if a customer comes in looking for a book that they don't have, a quick couple of phone calls will loacte a nearby store that has it, either for the customer to go around ad get it or they send someone from the shop to grab it immediately. Customer gets what he wants , 2 Shops help each other to make a sale and lots of good Public Relations which result in a customer returning to the shop again.
It works both ways. They call you, you call them. No man is an island and these days the more help you can get the better. If you find that they don't want to play ball then you just stay as competitors, whilst if you can back each other up, there is more chance that the customer will get what he wants and knows where he will get quality service.

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D_F

Drew1369

Foes, being that my company was stabbed in the back, by a now outta business (I helped alittle with that ) IT company.

We were going for the win - win situation, they needed some help with a project setting up some servers. They didn't use good recource managment with their people. We were both looking at making a profit off of this.

Well when we sent out the bill and they didn't pay ontime, we put down the late fee and they thru a fit and saw fit not to pay at all... needless to say small claims court came and went and they filed for bankruptcy and closed there doors.

All in all, I know longer trust compitition and see them as people we need to bury in order to make more money.

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Marge: We wouldn't be in this trouble if you'd just paid the heating bill!
Homer: I thought global warming would take care of it! Al Gore can't do anything right!

Chevy

In the U.S. you have to be careful with this one, as it amounts to price fixing, which is illegal.

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“My philosophy, like color television, is all there in black and white”
-M. Python

VincentWong

Chevy is correct. Price fixing is illegal!

Done_Fishin

I think I'm right in saying here inGreece that "businesses" have their own sort of "chamber of commerce" where it is expected that you both join and adhere to pricing policy. Maybe Zazula can explain it better, if he has time.

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D_F