Competition and Ethics

[JayJay]

Okay, so I have started my home business almost 3 months ago. I've been a stay at home Mom for 10 years and I came across an incredible opportunity. So I purchased my inventory and got down to business (selling advertising). I have an awesome product and everyone I have worked with has been thrilled with my work. However, I have a competitor that started up the same time as me. And I know they probably had to put way more money into their start up than I did. Truthfully, my product is by far superior to theirs. And I have much less overhead than they do, so I can charge less. I provide more services at 1/3 their price. I know for a fact that the business they do have has been mostly for free.

Anyway, I have sent my info to a few of their customers. I wanted the customers to know that there are other options so they can keep me in mind when making referrals. However, I have at least one of their customers who would like to drop their advertising with this co. and use my service. I feel guilty about this. I have never said anything negative or dishonest about this other service and I am only trying to promote mine. So how does a Christian deal with a fierce competitor?? Thanks so much and God Bless, JayJay

[Nellers]

That's a toughie as I wouldn't have even done what you did by emailing them ;) You have much more nerve then I could ever have :wink:

The way I look at it is this world is big enough that more then one person can be in the same business or be our competitor without the need to take business from them.

There are lots of customers for the taking, you just have to know where to find them or promote your business well so they find you.

But now that they are interested in you it’s going to be hard to find a way to turn them down even if you wanted to. Since you emailed them they will wonder why you’ll give this price to a friend that they refer but you won’t take them on.

How you deal with a fierce competitor is by building a website that is superior then your competition. By making your service/product better then others or offering something more... By setting yourself apart from all the others.

Even if you were dealing the same exact thing you can do that by offering bonuses, a newsletter, specials, money back guarantee…etc. Depending on what you’re selling. You can find many ways to be different and better and stand apart from the crowd.

I wish you all the best with your business.

[JayJay]

Thank you for your reply! This is something I am really struggling with. I actually mailed the info, not that that's any different. My dilemna is that since we are both new companies, I want to make sure that people realize there is a choice.

I follow up all my mailings with a call, however I do not call the competitor's customers.

I'm just not a naturally aggressive person, so my temerity with this business has caught me by surprise! I'm dedicated to making it a success, but I have just such a hard time dealing with the competition.

[Mel]

Okay this is a tough one for me too because I wouldn't have sent my info to their clients unless I was sending it to all the companies in the area.
Doing it this way would have made it fair game instead of you (and them) feeling like you were specifically targeting their clients.

With that being said, when I was managing the finances for a school that was on a tight budget (before I started working from home) I was always thankful to be notified of superior products for a lessor price. Sometimes that meant the difference in getting new playground equipment, books, computers, etc or doing without.

You shouldn't feel bad for offering a better product for a lessor price it only gets sticky when you pinpoint their clients and send your information just to them. So from now on just try to avoid doing that.

[Nellers]

You shouldn't feel bad for offering a better product for a lessor price it only gets sticky when you pinpoint their clients and send your information just to them. So from now on just try to avoid doing that.

I agree. You should have the passion, fire and drive you have to succeed to offer your better product, but I'm just not personally thrilled with going after someone's customers. BUT, I'm not saying there is anything necessarily wrong with that, just not my style.

Many businesses do this and they're successful and there are businesses that don't and are successful. It's all what you're comfortable with and what you want to do with your business. I think what you need to do is what you feel is best. I do with you all the best!

[JayJay]

Thanks so much for your replies! I want to run my business the way I live my personal life--with integrity. I will be less aggressive with the competitor's clients, from now on.

[Lori]

Hi JayJay --

You're right, I think running your business with integrity is the only way to sleep at night.

But don't let that stop you from advertising and looking for new customers!

I always try to embrace my competition - but with the type of businesses I am running, my competitors and I can generally mutually benefit eachother. Either with referrals for my VA/Web Design business, or with joint ventures with my website businesses.

You just need to find avenues of advertising where you know you will reach people who want or already use the service you offer. There is nothing wrong with advertising!

For example... I might go to other web forums, some of them are very similar to my own - and I will have my signature pointing to my website. That is actually advertising my own business directly to my "competition's" customers. Granted, its more subtle then writing them a letter, but it is a means of advertisement that we all acknowledge and accept as being perfectly fine :)

I wouldn't beat yourself up too much.

Lori

Thanks so much for your replies! I want to run my business the way I live my personal life--with integrity. I will be less aggressive with the competitor's clients, from now on.

[Nellers]

I wouldn't beat yourself up too much.



I agree! No need to do that hun. Do you have a website? If so, is it your own or a company website? If it's a company website can you make some changes? Like be able to optimize for the SE's? Is most of your business done offline or online? I can send some ideas your way for getting more people to your business if you'd like :D

[Debbi]

I applaud your aggressive tactics! And don't even worry about sending information to anyone you please. Everyone is someone's customer; obviously you're going to send information about your business to your target market, and if that happens to be some of the competition's customers, so be it. Every time someone uses a signature in this forum and advertises something to do with Work At Home Mom's, that's marketing to Lori's potential clients.

Best of luck to you! I am sure you will succeed.

[Lori]

Yes, and I benefit from that too because I have people with something to offer my visitors posting on the forums.

or the google ads on our sites -- they always promote our competition. I actually genuinely feel that competition can almost always mutually benefit eachother.

When I have too much work with my VA business - I always either outsource it to other VA's or refer the client to them.

What touches me is JayJay's integrity :) That's gotta generate some good karma!

:D

[JayJay]

Ahhhh, you give me too much credit, Lori! :) But thank you.

I just joined the Chamber of Commerce and reserved a spot in October's Business Expo and am so excited about it. I also signed up for a marketing seminar next week. I'm looking forward to getting lots of good info.

[Debbi]

wow, JayJay, you're busy! :) What are you promoting anyway? I'm very interested.