Is compitition good for an industry?

Discussion in 'General Industry Discussions' started by Az Gardener, Feb 14, 2007.

  1. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I was at a Franchising and Business Opportunity convention over last weekend. There were many companies all competing for investor $$ some in the same industry, food services, and others from many different industries. I was there to talk to new franchisors, that is people who had recently began to sell their business model as a franchise. It was a very educational few hours.

    One thing I was somewhat surprised to hear is that competition is good. When one store has the whole market and another moves into the area the immediate response is fear. But the records will show that when a new business moves in it brings in more opportunity for all.

    The new business advertises and now the people who possibly were not using a service decide it is time and they want another bid. For food services same store sales usually increase when other stores move in. Sounds backwards I know but thats what I was told.

    So what say You?
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I agree to the extent hopefully the competiton is as smart as you. I don't fear low ballers. The ones (competitors) I keep an eye out are the people who offer a high level of service at a competitive rate Dave.
     
  3. westwind

    westwind LawnSite Senior Member
    Posts: 444

    I also agree that competion is a good thing. The higher quality of service the better, it raises the bar if you will. I even enjoy sub-par services in my area as it makes us look better than we already are. There are customers that are price drives, then there are the customers that are quality driven. This is good for business.
     
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Competition is good. It means there is a market first and foremost.
     
  5. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812


    Cheap competition is not good. when there are a lot of part timers and under bidders its not good at all.
     
  6. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I guess I am just lucky in my market because I am somewhat insulated from the part timers and cheap bidders. They just are not competition.

    I would think that most business would evolve and the mow and blow of the cheap homeowner would be like the entry point. Then from there a company would evolve into commercial maint, applications, or install work, lighting, Upper end residential, anything but where a part timer could be your competition.

    I guess... come to think of it, it is Darwinism at work. If you don't evolve you perish.

    I think competition is the same, it causes you to evolve, adapt, become better or at least keep up with the crowd or you perish.
     
  7. Eakern & Dog

    Eakern & Dog LawnSite Senior Member
    Posts: 431

    I read about this as well in a book about "Owning Your Own Coffee House". The theory mentioned was that competitors that sold " higher end coffee" helped to generate more public interest in your product and created more customers for the industry.
     
  8. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812


    Here every aspect is being hit by the under-bider. Commercial accounts to the grandmother lawn. there is no hiding from it. I just witnessed a bidding war for basin construction. there is no way there going to make money on there bid. if the low-baller was not there, the other company's would make there pay and then sum.

    Low-ballers are trying to make a pay check like a wage earner? not like someone who needs to pay all the bills plus.
     
  9. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812



    How many people in the house drank coffee 3 or 4? there's only one house to cut, not 3 to 4 like in the house.

    We are not in the business"unfortunately" that has a addicting product.
     
  10. Ecoscape01

    Ecoscape01 LawnSite Senior Member
    Posts: 375

    In my business class this semester I learned about how when a Starbucks moves into an area to compete with a local coffee shop, the sales for both Starbucks and the local shop go up due to an increase in consumer interest just like Eakern & Dog said
     

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