Your Competition

What are you up against? Your investors will want to know.

How do you stack up to your competition ? If you are entering an existing market, you will have competition. Who are they and how do they sell their product or service? How much do they charge? These questions shouldn't bother you if you've done the proper analysis and have a plan to handle the competition. 

Video Competition

We had competition when we opened our video store. Sure, most of them were twenty minutes away but two of them were right in town, within five minutes. We knew that most video stores had video clubs and club rental rates and non-club rates. We also knew that the two stores locally were just dabbling in video; it wasn't their main business.

 We decided to establish a first class, top run movie store. All of our "titles" were classic or brand new and well reviewed videos. That made us more attractive than the part-time stores. In addition, in order to attract customers from the local and further away store, we accepted any other club memberships and charged their customers our 'club rate' We knew that we could impress them away from the competition......it worked we grew from 200 titles to over 3000 in eight years.

What’s your Competitive Plan

How much of the market do you expect to attract? Depending on the scope of your market and the geographic and demographic profiles that govern your product or service, Do you expect to capture enough business to make your business profitable? 

This is a critical point in your analysis. Every facet of revenues, costs, logistical requirements, warehousing, shipping etc. and especially, the MONEY requirements depend upon your estimation of your share of the market in which you are operating.

 Our Plan

We offered our honorary club membership until their membership expired at our competitors’ store. We knew that our quality collection and our great customer service and friendly store atmosphere would bring their business back to us. Then we would collect a membership fee for the following year. Our capture rate was close to 99%.             

Market Share  

This is what you expect from your customers. Demand is the total number of widgets or services that the public will buy. Your share of this large market is the basis for the cost of goods, raw materials, manufacture, marketing and sales programs, packaging, shipping and distribution, office equipment, personnel needs and ...and the MONEY requirements of your new company. What is your targeted share?

 One of my clients told me she wanted to capture 100%. I admired her ambition. She might just do it, but her whole plan will depend upon her tenacity to that desire.

If you are confused or have questions, Call Me! My first session is FREE!

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