Competition could wipe me out

[wanting2learn]

I have spent 3 years working on a product and have just got wind of abother company about to bring out somethin similar. I am a one man band and this other company are much larger and have a lot more money to be able to advertise etc.
I am worried, stressed, pissed off, anoyed etc about this whole thing.

Please offer some words of advice to a newbie businessman.

Thanks

 

[RockLinks]

We all have to start somewhere, those much larger companies where once a one man band to. List what makes you different to them and use that against them. If its a new idea then keep an eye on how they promote it, find out where there not promoting and see what mistakes they make. It doesn't have to be the end of the world.

 

[directmarketingadvice]

I have spent 3 years working on a product and have just got wind of abother company about to bring out somethin similar. I am a one man band and this other company are much larger and have a lot more money to be able to advertise etc.
I am worried, stressed, pissed off, anoyed etc about this whole thing.

Please offer some words of advice to a newbie businessman.

Thanks

If you were first to market and successful, then wouldn't someone have created a similar product at some point?

If so, what was your plan to deal with that?

Finally, it's very rare for any company to control 100% of a market, so why should this mean you can't succeed?

Steve

 

[Bri]

If your product is same/similar then they will haver higher margins to reach cos theyre larger company, larger overheads.

You should be able to offer better, more reliable, efficient service at a fraction of the cost they charge.

Bit of lateral thinking on your part needed.

 

[elaine@cheapaccounting]

if this were a new product you will be ok because you will have the patent - won't you

 

[Bri]

Elaine are you stalking me

 

[stevemcqueen]

if this were a new product you will be ok because you will have the patent - won't you

i was thinking that

 

[APTBLINDS]

i feel the same but some one from Dragons Den said (i think it was duncan bannatine) beat your competition with price to force them out of the market - and you can do it as i supose you have not got the overheads that the large companies have. you then have the monopoly on your market.

someone else also said about the patent - if this is the case a post in the legal section wont go amis

Also the best advertising is free - Word of mouth...

 

[Cornish Steve]

I'd suggest a few things:

1) If appropriate and within your budget, patent the technology. It's difficult and expensive, but in some cases it can be worth it.

2) Once you've launched, seek rapid growth. The bigger the impact, the more difficult you'll make it for those who follow.

3) Build a loyal user community. Do whatever you can to feed and grow that community. eBay survived against the big guys by building an incredibly loyal user community.

 

[Mister B]

i feel the same but some one from Dragons Den said (i think it was duncan bannatine) beat your competition with price to force them out of the market - and you can do it as i supose you have not got the overheads that the large companies have. you then have the monopoly on your market.
quote]

Would have to disagree with this...if they've got the buying power then they'll be able to crush you in a price war.

Play to your strengths and their weakness' Think along the lines that you're a racing yaught and they're a super tanker. You can adapt to market conditions and innovation far faster than them. In addition to this you can provide a better, personal service and response times. This will at least help to level the playing field

Mister B

 

[murdoch]

if your competitors are advertising, that may help you.
Its hard to convince people to buy 100% new concepts-
you can say that "mine is like x" but '"better because of this and that".
Good luck-
it had to happen! so plan around it

 

[fisicx]

Get your product out first.

Be prepared to spend on marketing, the other company will no doubt launch with a big budget so you need to stop thinking like a one-man band and get ready to match them.

Don't go down the low price route. We all like a bargain but as suggested you will lose in price war. So why not sell the 'quality' and 'orignal' message.

 

[ADW]

Agree with Mister B on this big and small scenario. Nothing about being smaller can guarantee you being cheaper. The opposite in most cases. There has been some other good advice here and I also see the other companies advertising as a potential oppotunity for you to get out there and get your product recognised quickly. They are only one Company and whilst you are smaller you will have plenty of opportunity if the market is big enough. Just make sure you are ready to move on this asap before to many others come in. Just make sure you are a thorn in the competitors side and all could work out well.

 

[Smallb]

USP, Offer something the much larger company can't give its customers Also consider good customer service, technical support lines (that isnt an 084/087 number) and even get on Skype so customer can contact you for free.

PM me if your considering getting a press release written or looking for a PR company to generate brand awareness for your product.

All the best, Simon

 

[cjd]

I have spent 3 years working on a product and have just got wind of abother company about to bring out somethin similar. I am a one man band and this other company are much larger and have a lot more money to be able to advertise etc.
I am worried, stressed, pissed off, anoyed etc about this whole thing.

Please offer some words of advice to a newbie businessman.

Thanks

Is your product in the market yet? - we're all asuming it isn't, but 3 years is a long time in development for a very small company - one thing small companies are suposed to be good at is moving quickly.

We need to know what your product is - without knowing that no-one can provide anything but generalised advice - if you'd just come up with an identical product to Black and Decker I'd say pack it in but if you have a niche service in a close but related area I'd say fine; it might even help you expand the sector and add credibility to your product.

 

[thebigIAM]

It could be your product is vastly superior ... and even cheaper. Sounds like you don't have that information to hand yet.

I'm with Murdoch. You can sometimes find competition will warm up the market for you.

 

[chrisogdenroofing]

if there is another company of similar size to the competition, perhaps you could approach them to sell your product to them?

 

You are making the assumption that it is the product that will succeed...

Not necessarily true.

Better marketing, better deal (a nd notice that is not necessarily price! - it is the deal as a whole - for example a massive guarantee can make a massive difference) and better copy writing in particular will make a MASSIVE difference.

People love the underdog...david vs goliath situations - and that can work for you too in PR

You have to find your "hook"....the "think that makes you king" or in the words of seth godin "your purple cow". So work out in your head....if someone asked you "why should I buy from you instead of anyone else, how would you answer.

You also make the assumption that there can be only one compaly in a market.
In every town there are MANY accountants including some HUGE practises....yet essentilally they all offer the same thing.

 

[JTSystems]

So come on then, details on the product... clearly it took you 3 years and this other company took a while to develop it so not like we can steal your thunder...

 

[adam_uk]

It be great if we know something about your product. You don't have to explain a lot but you know, you never know that maybe someone here might be able to help. There are good people here with skills and years of experience but be good if you can give some more solid info.

I agree with admagic...gave some brill advice. It is going to be about your marketing strategy, copy and targeting it.

I use to use flyers, adverts, cold calling and all that in newspaper but I started to learn online marketing which gives me direct response. Creating a marketing strategy, and tested it out using PPC (Pay Per Click). At first, I neglected marketing. Biggest mistake.

I needed something to help me online.

I know some people in my industry are competiting too and there are lots of them. I mean thousands to millions of Internet Marketeers but what helped me was the marketing strategy, targeting it at the niche I was aiming at and then combined it with PPC to get direct response.

So just because there is another company, doesn't mean anything. Yes, maybe competitive but you can overcome this with marketing, copy, and strategy.

I use marketing and combining it with PCC to stay ahead of my competition. And plus, there's more for everyone anyway.

What's going to get you ahead of these companies is having a marketing strategy and target it.

Can you tell us more about the competition too, so we can look, see what they are doing. It's always good to see what other competitors is doing, what their product is, so people here can give solid advice.

admagic touched on some good points. You go anywhere, there are many companies with similar products. You have to ask, what is it that makes them different? What gets one stand out and sell more? What makes one company attract customers?

It's their marketing strategy, the way they also brand themselves. So don't assume because there are companies coming out with similar products, and you've worked on yours for years, that it's over. Not by far mate. You can still make a lot of money, make your product sell, and even attract companies, customers to you.

Cheers

 

[Chris Ashdown]

Many first to the market companies fail as the 2nd generation products are the real sellers and earners

What sort of size is your market and how good is your marketing plan, you will probably have to sell verry few to mke a living compared with the bigger overheads of the big guy

Are you infringing any of his copywrights or patents in your design, you need to check with the patent office

With three years in planning you need to step up a gear and make a go ahead decision

 

[Tom McClelland]

I have spent 3 years working on a product and have just got wind of abother company about to bring out somethin similar. I am a one man band and this other company are much larger and have a lot more money to be able to advertise etc.
I am worried, stressed, pissed off, anoyed etc about this whole thing.

Please offer some words of advice to a newbie businessman.

Thanks

There is no such thing as a viable market with no competition. Unless you invent a totally original gadget that can be patented and that is fantastically rare. Competition is a fact of life. If you need 100% of the market to make a success of your business then there is something wrong with your business plan.

A large powerful competitor intending to do the same thing as you doesn't damage your plan. It vindicates what you were doing. Frankly if I were entering a market intending to offer something that no-one else has ever offered then I'd be seriously worried that there must be something fundamentally wrong with my idea; because ideas are cheap, it is execution of them that is difficult.

 

[The undercover exec]

What's the market size? I bet there is enough room for both of you, it is not as if for example there's only one type of mobile phone. Duane Jackson of Kashflow demonstrates daily one tactic of how to live with a gorilla in your market.

Then you've got to ask yourself what's you edge, how will you compete in this market space? Low price is mentioned above but you might choose customer service, a personal touch or even premium pricing as there are always people who will pay more.

Most importantly get ATTITUDE don't catastrophise get at it and active.

Good luck

and check the patent piece is covered...

http://theundercoverexec.wordpress.com/

 

[peebles]

hi,

its a shame that you didn't patent it. i don't think you'll be able to patent it now. no doubt the competition have already done it, if they could have. some things are un-patent-able (if thats a word!)

beat them on cost and approach their clients to offer the same service but cheaper.

pm

 

[peebles]

sorry pressed return or something when i meant to finish off.

pm me if you want and we can work out a competitive strategy together. i don't want any money, just a few good words about me (after the event) to go on my 'satisfied customers' page for the future.

 

[shaun adams]

Only thing wrong with lowering the price is that the market is destroyed by trying to better each other, small traders.

I find that if I sell an item I will sell it for the same price but try to offer a better service maybe you could better Amazon in some way e.g/ direct contact with the seller via phone call.

I have no dealings with Amazon to offer a solution to better them in service, although with a company that big that is the only alternative.

A company that big would create a market by selling at such a low price even if they don't make any money if they order 10,000 a month compared to your 3000 they will have the best price from the wholesaler or manufacturer.

Once they have done this for a while they will increase the price, it may not be aimed at you but rather the market place to push all the small guys out, or create a market.

You could try ebay ????