Is it worthwhile getting in touch with a competitor?

[draz]

Hi there,

I have been contemplating as to whether or not it is worthwhile approaching a competitor as an offer came up to have a chat with an existing competitor in my industry. I am still in start up mode, so am thinking making it aware that a new competitor is out there probably won't do too much good.

Does anyone have any views on this and what could possibly be gained from engaging with a competitor?

Thanks,

Draz

[Alexishost]

Competitor sometime can help you save your time, when you convey your purpose and planning to not market in their target market.

[abhaykhurana]

In this situation, it's important to remember that there is more than enough business for you AND your competitor and for everybody else in your niche for that matter.

What exactly does the "offer" to speak with your competitor entail? What's the purpose of it? Is there some kind of mutual benefit that is intended to come about through this meeting?

I think that knowing the purpose of the meeting would help us help you.

[dslackman]

I would certainly advise you to learn as much as you can about how your competitors do business, especially their strengths and weaknesses, but I would not expect the competitor to share any useful information with you. You will need to learn this info by other means.

[SteveG]

I always enjoyed meeting competitors. In most cases it will be only very guarded info being shared. I became close friends with many competitors in my area and we often helped one another fill orders and solve problems. But we still had our secrets. Trade shows are a great place to meet thoe in the same business who may not be direct competitors and will often share quite a bit of experience after having a few cocktails. Steve

[GetGrasshopper]

It certainly can't hurt to speak with your competitor. No, they aren't going to give you all the answers but you might get some good insights.

Steve G makes a great point, think about trade shows and conferences. You are all essentially in the same business, there to learn about and from each other. If someone is offering to sit down, talk, have a few beers, I say do it.

[CindySchulson]

There is a lot of power in collaborating with other people that service the same target market as you. They might be a competitor, but is there something they do that is different from you? Do they provide a somewhat different service from you? If they do, then creating a JV can benefit both you and your customers.

Of course, its still at the very beginning stages and you're not moving forward to that now. But if you can go into the meeting thinking how you can possibly collaborate, as well as learn and share information, it could be a great meeting

[jsayers]

Don't overthink it... make every possible connection you can in your industry. Your competition would be insane to give away their trade secrets, but there's lots of benefit to collusion beyond that issue.

[azance]

Talk with a competitor about what? Tell them that you exist? That's not really something you want them to know, you'll be able to sneak up on them. If you're doing your job right, they will discover you exist when you are taking their sales.

[jsayers]

Of course there is benefit to communicating with your competition. You just need to figure out where the benefit is before you set up any kind of meeting.

Keep your friends close, and your enemies closer.