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Old 04-16-2007, 07:34 PM   #1
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increasing your market share ... good or bad idea - you decide

alright ... i dunno bout you all ...

ok ... let's say you have 50 competitors in your area. 2 of them make up for 50% of all sales in your area.


is this like your local industry?? Is mine.

I have an idea.



The 2 largest competitors are marketing GIANTS.



I walk into someone's house on a sales call ... am I worried about "Billy Bob's Construction" doing an estimate as well??? Nope --- he only has a 1% of the market share.

I'm selling against these two large corporations.


I imagine most of you all run into this as well. Heck, if nothing else - there's plenty ill-will towards Home Depot around here. So I imagine this hits home





But what if you could gather with say 2 or 3 of your strongest competitors. Form an organization --- not a company --- and organization. The purpose of this org would be to promote ALL of you. The purpose is to take a huge chunk of the large comp. market share.


It's simply the little guys ganging up on the big guy.

You and your 3 fairweathered friends will STILL compete against eachother

You just combine your marketing funds to promote this "organization"

Say like the "Chicago Metro Area Remodelors Guild" --- something like that.


There will be no conspiracy stuff like price fixing (it's illegal anyways) --- or setting "territory"

the four of you could not handle the market that you would capture singlehandedly --- so there would be enough work to go around


you're just simply biting into the big guy's pie



good, bad??? realistic? unrealistic???

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Old 04-16-2007, 08:17 PM   #2
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Something like www.gtapainters.com?
We do compare notes, work together, exchange leads etc.

We even meet with an agenda.
A basic start to what you are talking about?
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Old 04-16-2007, 09:16 PM   #3
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Possibly illegal. Be careful.
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Old 04-16-2007, 09:21 PM   #4
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Something like www.gtapainters.com?
We do compare notes, work together, exchange leads etc.

We even meet with an agenda.
A basic start to what you are talking about?
exactly George

Tscar - what would be illegal

there is no price fixing
there is no territory staking
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Old 04-16-2007, 09:35 PM   #5
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You don't have to do it, you only have to give the impression that you are (or could). Like I said, be careful.
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Old 04-16-2007, 09:45 PM   #6
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Dirt- Or you could just become such a great salesman that when you go out on a estimate, the client feels that they would be a absolute idoit to hire anybody but you.

I think we all know who is taking 50% of the market in your area. Honestly, if you market yourself correctly, they should not be your compeititors!!!!

Instead of trying to set up some kind of ring that could be illegal, why don't you just do more networking with the various trades involved in your project?

I think i will start a new thread about this.

Matt
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Old 04-16-2007, 10:14 PM   #7
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Dirt- Or you could just become such a great salesman that when you go out on a estimate, the client feels that they would be a absolute idoit to hire anybody but you.

I think we all know who is taking 50% of the market in your area. Honestly, if you market yourself correctly, they should not be your compeititors!!!!

Instead of trying to set up some kind of ring that could be illegal, why don't you just do more networking with the various trades involved in your project?

I think i will start a new thread about this.

Matt

sales is not the issue ...

like i said ... 50% of the marketshare ... captured by the big guys
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Old 04-16-2007, 10:19 PM   #8
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You don't have to do it, you only have to give the impression that you are (or could). Like I said, be careful.
wouldn't that be like saying that anyone who owns a rifle is giving the impression that they could be committing murder??

Not doubting you Tscar
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Old 04-16-2007, 10:34 PM   #9
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sales is not the issue ...

like i said ... 50% of the marketshare ... captured by the big guys
Why does it matter what their market share is? Would it be any easier to sell pools if every builder in your area each held 2% of the market?
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Old 04-16-2007, 10:34 PM   #10
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No it wouldn't. Just be aware that anti trust and price fixing are real and serious issues and are pursued with vigor by state and federal agencies. Any time you have a group of companies or individuals from the same industry in formal or informal discussions there is always the possibility, if not the intent.

Just be proactive and aware of the issue, and you will generally be OK.
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Old 04-16-2007, 10:39 PM   #11
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alright - general consensus is "bad idea"

see new idea
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Old 04-17-2007, 07:22 PM   #12
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sure lets do it dirt, but out of conscience i must warn you,,,
ill suck up every sale, hold back leads, & offer you 10$ an hour afterwards
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Old 04-17-2007, 07:36 PM   #13
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sure lets do it dirt, but out of conscience i must warn you,,,
ill suck up every sale, hold back leads, & offer you 10$ an hour afterwards
that's fine ...

i came up with the idea ... so i automatically get 51% ownership



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Old 04-17-2007, 07:55 PM   #14
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I may be stating the obvious, are you not kind of doing this right now.....
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Old 04-17-2007, 08:08 PM   #15
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I may be stating the obvious, are you not kind of doing this right now.....
might tell me what mean you?


(seriously)
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Old 04-17-2007, 08:27 PM   #16
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dirt,
based on your operating model you have no chance of dominating new pool construction...

now renovation is another game, i think you know where to look shhhhhhhhhhhhhhhh
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Old 04-17-2007, 08:44 PM   #17
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dirt,
based on your operating model you have no chance of dominating new pool construction...
not in a million years




it's what's spawned the ideas lately


now - i don't have to dominate by any means to make a great living ....


but it's wild to think what it'd be like if I could
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Old 04-18-2007, 08:16 AM   #18
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What about something like, doctors, lawyers, dentist do. A locator service.

Five small pool guys, toss thier marketing $ together and market. 1-800-Get-Pool and getpool.com (or whatever).

You just have to find a way to make sure everyone is getting a fair amount of the leads.
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Old 04-18-2007, 09:33 PM   #19
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What about something like, doctors, lawyers, dentist do. A locator service.

Five small pool guys, toss thier marketing $ together and market. 1-800-Get-Pool and getpool.com (or whatever).

You just have to find a way to make sure everyone is getting a fair amount of the leads.
right on


just SOMETHING to go against the big guys with.

i honestly am never threatened by other small and mid-sized companies. I shouldn't be a threat to them either.

The enemies of my enemy are my friends





from all the belly achin about Home Depot ... i'd think this idea/thread would resonate a little more around here ...
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Old 04-18-2007, 09:45 PM   #20
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The simple answer to competiton from any source is to improve youself. Do not allow the market to dictate your business plan or your prices. It is your job to set prices and standards, not follow them.
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