Competition Sucks

No doubt you’ve heard that imitation is the sincerest form of flattery. Having someone copy you is supposed to be flattering because it says they want to be like you.

So what about competitors? An economist would draw an eye-crossing graph showing that competitors enter a market because they recognize the potential that exists to earn a profit. Let me repeat that… competitors imitate you (i.e. enter your market) because they want to be like you (i.e. they want your profit).

[enter sarcastic chuckling from small business owners]

Sure, if you’re Jennifer Aniston it might be nice to have everyone go to the salon and ask for your haircut by name, but business competition is not flattering. It sucks. You want to focus each day on what you do best, not on fighting tooth and nail for customers.

That said, competition does signal that you are doing something right. So take a moment to bask in the glory… ok, now roll up your sleeves. There’s work to be done.

Count Your Blessings
Remember the reason you now have competition is because you are doing something right. Before you set off to acquire unclaimed market share be sure you’ve got your present share tied down.

You’ve gotten where you are today because of your current customer base. Let them know how appreciative you are for their business. While you’re at it, ask if there’s anything you should be doing that you’re not, or if there’s anything you could be doing better. Soliciting a customer’s opinion is one of the greatest ways to express how much they mean to you (especially if you act on their recommendations), because you’re giving them an opportunity to help shape your business.

Think Before You Change
Remember the reason you now have competition is because you are doing something right. Don’t feel like you have to change what you’re doing in order to compete, but don’t ignore change either.

If you’ve historically been the only provider in a market, you’ve had free reign to charge whatever you want, provide whatever level of service you want, and basically coast whenever you want. That’s the main reason competition is good for customers… it forces everyone to be on their best behavior.

But don’t just change for the sake of change. Change with a plan and purpose in mind. Consider the recommendations of your current customers. Are their recommendations valid and reasonable? Observe what your competition is doing differently than you. Is there anything that you should imitate?

Be Wary of Pricing Changes
Remember the reason you now have competition is because you are doing something right. Don’t rush into pricing changes, because you have the potential to price yourself out of business.

One of the most common soft spots for new competition to strike is your price. For sure, they could be justified in questioning what you’re charging, especially if you’ve been the only cat in town. However, they might also be inexperienced… they don’t fully understand the expense of providing the product/service or they don’t realize how valuable it is to the market. They could also be well financed, meaning that they are at leisure to assume some loss.

Promote, Promote, Promote
Remember the reason you now have competition is because you are doing something right. So, tell the market about it.

It’s time to stop viewing marketing as an expense and realize that it is an investment. Mass advertising and promotions can help you communicate to the market-at-large what you’re doing that’s so great; directed efforts can help you target and acquire that unclaimed market share; and focusing resources on sales and customer service can ensure your business continues to thrive.

Competition Will Crest
Absolutely, hands down, competition sucks. And new competition is a pain in the ass.

Have comfort, though. The same economist’s graph showing why competition exists would also show that there is an ebb and flow to competition. Ample profit in a market draws competition, but that same competition will inevitably weed out the weak.

As long as you keep your game face on and don’t ignore what’s afoot, I assure you the competition will crest and you’ll eventually get a break … at least until the next round begins.

-Sarah, Emogen marketer