Tuesday, August 12, 2008

Knowing Your Competition

Knowing who your competition is is important in business.  Some people get a little obsessed with it, and I do not think that is healthy.   I do believe, however, that it is important to know who you are being compared to by potential clients and not just who you think you are being compared to.

This can be achieved by simply asking your potential clients who else they are considering.  I used to be a bit squeamish about doing this, but I got over it.  You should, too.

There is nothing unethical about simply asking brides who call you which other planners they are interviewing.  This helps you know whether or not your advertising and marketing is working in the way you intended it to.  If you have several years experience under your belt yet are consistently being compared with brand new knottie-turned-planners, there are some serious problems with your marketing strategy and you need to revisit your business and marketing plans.

If a bride chooses someone else over my company, I also ask whom she decided to hire.  I'm completely honest about my intentions about it - that it helps me to have accurate statistics when I review my business plan each year.

This information should not be taken lightly.  Knowing which other planners a couple is considering does not give you license to bad mouth that vendor or try to discredit them in any way.  Of course, you are smarter and have more ethics, manners and class than that, and would never stoop to such a low level, but I am still repulsed by some of the stories planners share with me. 

Actually knowing who you are competing against versus who you think you are competing against will help you create a business model that works for you.

Do you ask potential clients who else they are considering?  Why or why not?

7 comments:

Candice @ Jubilee Events said...

Once again, great advice Liene. This business is just like any other business and it is so important to know where you stand in the market place and how your advertising is helping or hindering you.

I'd really like to hear any advice you have on advertising as I've sustained on just word-of-mouth and free advertising thus far. I am starting to invest in paid advertising, such as print and some of the well known online variety. Is there anything that you've learned through out your years about advertising that could help some of us avoid making costly mistakes?

rebekah at elizabeth anne said...

If you aren't aware of your competition, or your potential competition, you can't be successful long term. I truly believe that. Not obsessed, but aware. It also inspires creativity.

isha said...

I don't ask potential clients who else they are considering. The reasons for not doing so... it somehow seems inappropriate or maybe because I wasn't sure that it would make a difference. I will have to re-think that. Thanks.

Tree said...

Fabulous advice! I have never thought of that.

Anonymous said...

Great post Liene. Knowing my competition is something I do as well. I don't however ask my clients about this information but sometimes my clients offer this information during consultations. For me, learning who my competition is helps me to refine my company products and services so that my company can be distinguished from other companies that offer similar services.
Adizat

event girl said...

Hi Liene,
Great info, as always. I guess for me, it's uncomfortable to ask Brides who else they are interviewing. Does that make sense?
I don't want to put them on the spot, or make them feel like they have to share.
Is there a certain way you recommend to ask, or bring the topic up?
When they say they've been referred, then I feel comfortable gathering that information.
I look forward to the next post on this topic!

Wendy Kidd said...

I had not been doing this, thinking I had a good handle on who my competition is. However, I did so immediately upon reading your post and it really opened my eyes. Thanks so much for the great tip!