How could we draw in thier clients?

[Claire]

Hi,

Wasn't really sure where to put this so thought this might be the best area of the forum. A prospective client came in today to register for a service that we offer, he told me that the company he was using previously which is just around the corner charge 10 times more than we do. Is there any way that we could draw their clients into using our much more cost effective service? Does anyone have any ideas?

[peterjhale]

2 things spring to mind.

If you are 10x cheaper (or they are 10x more expensive) is your pricing right ?

Do you want to compete on price ?

If all your customers are local then why not do a direct mail to ALL local businesses or even phone them up just offering your services ?

[davidhorn]

My first thought is 'are you sure that they're the same customers?'. Customers willing to pay 10x more for a service may not be the ones you're after ... Customers who buy a plasma TV for 2000 aren't the same ones who buy a 17inch tube from Argos for 200.

Still, that said, there's obviously some overlap or else you wouldn't recognise them as competitors. I agree with previous reply - around the corner may be too close ... perhaps you could partner with these people? If it truly is the same service then maybe you could convince the competition to outsource some of their work to you - it's a cheap way of getting new business for you (cost per client acquisition = low), you'd be able to charge, say, 5 times less than the other business, so everyone would be happy financially, and neighbourhood friendliness preserved!

Good luck,

David