Colom Newbie

It was either Warren Buffet or George Soros that said one of the factors he looked for before investing in a company, was how difficult it is to launch a competitive firm. For example if you are Boeing you are not going to have a competitor appear overnight. Your average anonymous pencil pusher with an idea for a new business is not likely to make a stab at any of Boeing's sales. But if you were an average anonymous pencil pusher who began a business in the spare room above your garage, and now that business supports you, unfortunately there is not much stopping the next anonymous pencil pusher from copying you.

That is the plague of doing business online. Particularly online retail sales. There really isn't much stopping someone from copying your website. It is the price of online success. And if imitation is the best form of flattery it should feel good, but most likely it won't. But sooner or later if you have an online store, someone will come along and copy you, steal from you and undercut you. Probably all of the above, and when that happens what are you to do?

I face this from new upstarts once or twice a year. They never have put the effort into their site, that I have, nor do they bring anything new or inventive, they just copy. They lack creativity, and frankly much drive, but they are there, and I know they are getting some sales, some that should be mine. A certain number of online sales are impulse, and no matter what you cannot get every one, but what to do to put the odds in your favor? What do you do when competition steals blatantly your ideas, pricing, and plays underhanded with nothing original to add.

First off, if you have followed some of the ideas presented here, your website will offer many unique things that can't be blatantly duplicated. You should have looked at your established competition when you took the plunge, and yes they had the same feelings you are having now, and done some things different, better, and original. Many ideas have been presented here, on developing loyal customers, and quality web experiences. And if you have done those things the first thing to do when you see poaching of your ideas is: DON'T PANIC.

Have faith in your business, your designs, your website, and your customers. They will recognize your commitment.

Search the new competition over; did they just steal everything from you? Or do they offer something that you would like if you were a customer? If so copy from them, let's face it, one bad deed deserves another, or all is fair in love and war. Choose your rationale, but the idea here is to offer your customers the best shopping experience possible. And just because it was at a different website first, does not exclude it from being on yours as well. Providing it is not copyright protected or trademark protected. But if it is some different products, or different twists on packaging or marketing, then offer the same thing on your place of business. And for goodness sake try to improve on it, if possible. Or at least change the marketing message.

Continue with the quality of your website. Most folks are lazy; most do not want to offer articles, ideas, suggestions, free info, expertise, etc. Keep your information about your products, and your field, visible. Keep it fresh, and keep your blog up to date, let folk's know you are an expert, and you are alive, and you care. Subscribe to magazines for ideas, visit shows, or expos, keep in touch. Do everything that has made you successful, and do it better.

Branding, branding, branding, continue harping on your brand. If you use online ads, work in themes like beware of imitators, or insist on brand X, nobody matches are quality, etc. Work on your company brand, label, and what it means.

Use this as a time to re-dedicate yourself. So many people say if their business takes a hit, that they guess it wasn't meant to be, or those weren't good customers anyway, if they don't come back. Earn them back; constantly ask yourself how you can improve.

Whatever you do, do not enter a pricing war. Cutting prices is a lazy man's way out, and it leads to bankruptcy. Charge your prices based on solid reasons and stick to them. Run sales, promotions what have you, but getting into a pricing war can only lead to lower profits. Remember you are the established one in this event, and they are stealing off you. Your job is to convince your customers there is no reason to shop elsewhere and potential customers they should shop with you. A pricing was shows you are not sure of that.

Instead accept the fact the new competition is here, and there will be more to follow. And work on all the aspects that go into a customer's decision to make a purchase. If you do decide your prices are too high, and then adjust, but pricing is an internal process not a reaction to the new kid on the block. Your goal is to increase your sales, and you can do that all sorts of ways. New competition just shows you are doing things right. Now use it as motivation to do things even better.