HAVE YOU EVER SEEN…
...a new competitor come into town and immediately take over?
Why did the new competitor come into town? And why are they doing
so well? Is it that their customers (who used to be your
customers) are just enamored with trying something new? Or did you
alienate them somehow? Was it something you said?
Are they that much better than you? What exactly is their pricing
structure? Are they doing something that you didn’t know about, or
something you knew about but decided not to try?
Will your customers come back to you after the newness wears off?
If your customers were dissatisfied with you, will they give you a
second chance?
What do we do now?
Old barriers that protected markets and kept providers confined to
arbitrary catchment areas have been falling for years. In fact, it
may have become an avalanche. The need for cash flow and market
share is now almost as big for non-profits as it is for any business.
Aggressive organizations are reaching across many lines to get them.
Be aware that if you are doing well, then somebody is going to want a
piece of what you have. There are people out there doing research
on what you have and how you are doing it. I know, I was one of
those researchers for some time. The watchword was SWOT
(strengths, weaknesses, opportunities, and threats).
The best bet is to do the research yourself. Do you have a cash
cow? If so, it may be an indication that you are overpriced on
that product. This could be a big invitation to competitors to
enter your market.
Do you have your customers “over a barrel”? Well, you won’t for
long. Customers can be very loyal, even protective of a vendor who
has gone out of their way for them. But they can be just as
vindictive toward a provider who does things that demonstrate arrogance.
Customers who feel that they have been disrespected will virtually dive
toward any new option.
How much money have you spent on research, development, and training
lately? Are you just meeting the minimum requirements of your
licensing bodies? If so, you are missing a great opportunity to be
viewed as a vibrant and vital organization. You might also be
missing a product or technique that could make what you are doing
obsolete.
Did you hook yourself to the coattails of a single political influence?
If so, what happens to you when that influence falls out of favor?
The list is long, but try to think like a competitor. What are the
weak spots in what you are doing? What would invite a competitor
to set up across the street from you?
Finally, realize that no matter what you do, you can not be assured of
keeping all of the competition away. But that’s ok. You may
find yourself sitting on the same side of the table with your
competitors when you face legislators, licensing bureaus, and purchasers
of services. Non-profits have a tradition of joining together to
help their field and their consumers, so having more players can mean
having more influence.
Just stay on your toes. If you don’t do it on your own, be assured
that more competition will come along and force you to.