scary competition

[cakelady]

Hi,
How can I find out about new businesses coming to the area?

My situation is this: after working from home for years, the time is now right for me to move my business forward.

I've found a little business for sale (belgian chocolate shop) which perfectly compliments what I already do (cakes, chocolate cakes, belgian chocs etc) and I would simply merge the two together. The shop is in a secondary retail location with other similar small independant retailers.

However my husband was told, by a business associate, that another "chocolate shop" is moving to the area from London. I know the retail unit. It's big, prominent, and in a great primary location. They must be confident about selling alot of chocs....and because of the size it's large enough for a cafe - with cake. I'ts scaring me and I really need to find out more.

I'm not afraid of competition but this to me is extreme and could make my little shop look like a joke.

I really do need some perspective on this and welcome comments. In this situation, what would you do?

 

[Mister B]

Have faith in your ability and product.

As long as you're products & service are superior, then there is no reason at all why you cannot succeed. Make yourself stand apart from them and give your customers a reason to buy from you, preferably not on price!

My guess is that if they can afford to take a large primary unit, then they must be selling volume chocolates which are more than likely inferior to the ones offered by yourself. If that is the case, then you're half way there

If I were you, I would find out who they were, what their strengths and weaknesses are, and go from there.

I know it's easy to say from behind a keyboard, but I would probably be inclined to go for it.

Mister B

 

[cakelady]

Thank You! I keep reminding myself that the high street also needs small independant retailers. I must keep my confidence!

 

[Mister B]

As I said before, if you can beat them on service and product, then the rest will follow.

Not everybody likes to buy from faceless corporations But then again, we don't know who they are...

Mister B

 

[OldWelshGuy]

you can find out as they would probably need planning permission to make changes and this is public record. Go to your council and ask them if there is any scheduled works for that address

Depending on price and quality though, this could be a good thing for you.

 

[vvaannmmaann]

If the competition is Hotel Chocolate or Thorntons,you have nothing to fear.I dislike all of their products.Just my opinion of course!

 

[iArtist]

Cake Lady I understand your concerns.

I once opened a very small, very unique little shop out of town and as a one off people enjoyed making the trip to see me.

Within a month I had a man in a suit outside my shop taking pictures.
Shortly afterwards right across the road opened competition.....very different style to me, so they actually spent more time in my shop checking out what I was doing and moaning about my prices etc. than I ever did in theirs. In fact I never paid them a single visit.

In summary, they weren't a threat.

However, then opened a shop in the main town centre, which duplicated me in every possible area including the decor (which in itself was unique - I did it myself and did not use standard shop fittings or paints etc.)

That did see me off. That and a burglary.

I think if your competition are different in style to you, you can both enjoy your own niche audience. But if they 'rip you off' then you might be in trouble.

If you want to find out who is moving into that unit, call the council/landlord etc.

Good luck

Leah

 

[matt.chatterley]

Thank You! I keep reminding myself that the high street also needs small independant retailers. I must keep my confidence!

And in general - at least psychologically - you have some advantages, in that a lot of folks will prefer to buy from you, than from a chain.

Also, the "plus" of chains in food/beverage service (of any kinda) is their consistency - however to some extent it is also their downfall.

The golden arches are one example - if you go to McGreasies, you know what you get - and what to expect. Your expectations will most likely be met but not surpassed (assuming QC processes are upto scratch).

However, you won't get anything which really impresses you either - extreme example, but also true of confectioners e.g Thorntons and even the 'upper tier' e.g Hotel Chocolat - because everything is produced on a larger scale, even if it is all hand-piped etc - you can still really excel in terms of product and customer service, and benefit fully from the recognition!


So as another poster said - have faith and go for it!

 

[MrsPWN]

I can understand how scary this is, I was looking at starting a deli a couple of years ago in our local town but with the possibility of a recession being spoken about I decided not to but someone else saw the need and opened in the same unit BUT it turned out another deli opened further down the street a month later. Both are still open but it is touch and go.

Service is probably the way to go, we use a greengrocer at work who can sometimes deliver stuff before I even get from the office back to the kitchen, nobody coming to the area could wrest me away from him.

Approaching the council is a great idea, good luck and keep us posted, there is alot of expertise on here that can help you be the best in the area

 

[iArtist]

Cake Lady I understand your concerns.

I once opened a very small, very unique little shop out of town and as a one off people enjoyed making the trip to see me.

Within a month I had a man in a suit outside my shop taking pictures.
Shortly afterwards right across the road opened competition.....very different style to me, so they actually spent more time in my shop checking out what I was doing and moaning about my prices etc. than I ever did in theirs. In fact I never paid them a single visit.

In summary, they weren't a threat.

However, then opened a shop in the main town centre, which duplicated me in every possible area including the decor (which in itself was unique - I did it myself and did not use standard shop fittings or paints etc.)

That did see me off. That and a burglary.

I think if your competition are different in style to you, you can both enjoy your own niche audience. But if they 'rip you off' then you might be in trouble.

If you want to find out who is moving into that unit, call the council/landlord etc.

Good luck

Leah

I'd like to add, sometimes people with more cash do set out to deliberately copy smaller businesses in the area as they think 'oh that works, we'll do it better'.

I recall a member on here once asking how they go about 'copying' a small company or should they just try to merge with them. After my experience I was not impressed! These people are out there.

You are right to be cautious. But if you do your homework and stay on the side of personal service, competitive prices, quality, creativity re display and marketing, you may retain your audience.

Myself, I like Thorntons. I like their chocs and I like their prices and I like their delivery service. But then, I would probbaly not have bought from a non Thorntons shop so you would not be losing me as a customer in the first place. Thus, if you already have a client base, you can maintain it!

Perhaps now is the time to try to build up a database of your buyers, invite them to enter a choc competition and when you collect their details have little box saying you may from time to time email them with a special offer. They'll tick if they agree etc.

Once you have their details (and their agreement to be contacted) you can start an email marketing camapaign to inform buyers of sales, special occassion chocs and so on.

Leah

 

[gregs2769]

hi cake lady do you know the competion yet?

you will find that it will help as you can look at what they do, see what works and what dont work and apply to you business but with out losing your own unique way.

i agree with what everybody else is saying as well about service. Great cutomer service and that ''personal touch'' will etablish you in the community and give you long term reapeart business. i see a big return to small business and in many areas, consumers more and more are looking to spend there money in there area, local money on local produce support the local area.

 

[panachesols]

I have an excellent website 4 you to use, which I'll dm u tonight

 

[am:pm graphics]

I might be wrong but in some cases it can help to have another business doing the same thing as yours nearby, as long as you have USPs. Another business may attract more potential customers to the area for you.

Pauline

 

[cakelady]

Thank you for all of your comments and suggestions. I'm going to track down the landlord and speak to the council to try and find out who the competition are (I know it's unlikely to be Thorntons as they already have 2 shops in the town)

I'm wondering if the people selling the shop already know.....perhaps I should talk to them too?

 

[RBS]

Hi,
How can I find out about new businesses coming to the area?

My situation is this: after working from home for years, the time is now right for me to move my business forward.

I've found a little business for sale (belgian chocolate shop) which perfectly compliments what I already do (cakes, chocolate cakes, belgian chocs etc) and I would simply merge the two together. The shop is in a secondary retail location with other similar small independant retailers.

However my husband was told, by a business associate, that another "chocolate shop" is moving to the area from London. I know the retail unit. It's big, prominent, and in a great primary location. They must be confident about selling alot of chocs....and because of the size it's large enough for a cafe - with cake. I'ts scaring me and I really need to find out more.

I'm not afraid of competition but this to me is extreme and could make my little shop look like a joke.

I really do need some perspective on this and welcome comments. In this situation, what would you do?

IMO Dont be scared - I think in your case your small shop run by you would attract people more than big retail store next door, because customers would get the best, personal attitude and they would feel more like at home.

 

[cakelady]

I have found out who the competition are and have been encouraged, rather than discouraged, to keep going and see how I can set up a great little business......I'll be back in 6 months with an update!!