Dealing With Competitors

How do you deal with your competitors? For some, a little friendly competition is a good thing. On the other hand, our competitors are taking sales away from us, which means a loss of income. And some will try to work with their competitors by forging alliances or even just taking over their business by buying them out.

Years ago, I met a gentleman who was established in the insurance field. I was an upstart just getting back into the business after an absence. He and I chatted from time to time and we really didn't cross paths too much when it came to our clientele. Generally speaking we got along. 

One day a lady called me and said she wanted to change her insurance. She was going through a divorce and was on her soon to be ex-husband's group plan. She said she had tried to reach her agent but he wouldn't return her phone calls. I obliged her and got her a policy she could afford. 

About a month later the other agent approached me in the hallway at a networking function, madder than a wasp. "You stole my client!" he said, visibly upset. "I thought we were friendly competitors but now the gloves are off!" I tried to explain that she called me, I didn't call her. Secondly, she never said who her agent was. "All's fair in love and war!" he ranted, small veins bulging from his neck.

"I guess if you had returned her calls you wouldn't have lost that client and we wouldn't be having this conversation right now," I said. He looked like I punched him in the stomach. 

"You know I return phone calls!" he screamed. 

"That's not what I've heard from half of your clients," I said, turning the proverbial knife. "I hear it a LOT."

That guy huffed and puffed as he walked off. I had no obligation to him at all and business is business. Not servicing his client properly was his own fault. So was losing a client he had for years. 

Using LinkedIn, I have met many other people in my field who I don't consider to be competition, mainly because they are working in a geographic location far away from me. For those people, I have struck up conversations and picked their brains. I want to know what works for them and how I can use those ideas, even sharing them with others.

Currently I have been in a period of trial and error when it comes to marketing. Using social media to convey my messaging has been a struggle at times, so when one of my competitors ask me what works, I'm hesitant to reveal anything. Why should I spend nearly two years to find the "secret sauce" and then give that away to someone who can take business away from me? It makes no sense to do that. 

Years ago I knew a lady who was a successful massage therapist. She would tell others in her profession that they needed to "bless the competition", which apparently meant that shouldn't undercut each other on their rates. When a new therapist was starting out with little to no clients, they would get business by low hourly rates or package deals. The "blessing" lady would be infuriated that someone lowballed her pricing. 

She tried to tell me how this practice hurt everyone, but really it just hurt her bottom line. "You have to understand that you are a massage therapist second, and a business person first," I explained. "This is business. Businesses compete." She didn't care for that answer.

Know who your competitors are and make rational decisions when it comes to how much of a relationship, if any, you want to have with them. Remember, your business pays your bills. 

Chris Castanes is a professional speaker who helps sales people succeed through workshops and humorous presentations. He's also the author of "You're Going To Be Great At This!", a humorous look at sales. For booking information, click here. He's also the president of Surf Financial Brokers selling life and disability insurance in several states.