Trying to compete with large competitor??? Help!

[businesssuccess84]

Hello Everyone,

I am new here, and after racking my brain I thought this was a good place to start fresh. Maybe you guys can help. I am young entrepreneur (25) and have been running a successful consulting firm for the past five years. Well, my first Client has been really happy for these five years. Recently, within the past two years, the Client got a new senior manager, that just happens to be the "contract signer" for the particular service I office. Well, has she been ever so burdensome lately.

My company does a great job for this Client. The whole company loves my service and employees. However, this is the last year of the contract and they are now expected to renew. I don't want to make any mistakes that will jeopardize this renewal.

Lately, the Contract Signer has become very inquisitive as to how much my company is saving their company (I've provided all the great figures), and she keeps comparing me to my competitor asking if I do the same things etc etc. She forwards emails from my competitor to me, asks if we can do similar things as them etc etc. My competitor is much larger than we are, but they do less quality work. My Client was actually with this competitor and chose my company to replace them five years ago.

What do I do? Do I quit worrying? Should I be careful and think this new contract signer is trying to replace my company? How do I handle all the competitor comparisons she keeps giving me?

This is really stressful and any help would be appreciated.

[my_misyel]

I know this is stressful, but looking from a brighter side, you have to be thankful because your client trust you and don't just quit because you cannot make it. Accept it as a challenge.

[businesssuccess84]

Thanks for your reply. Would you take this as the Client is trying to replace you, or would you take this as the new member of Senior Management is just trying to get a feel for your company and see where you stand in the scheme of things? I tend to be negative and take the above as "OH THEY ARE TRYING TO GO WITH MY COMPETITOR" than "Oh, she is just trying to learn about my company" Perhaps I need to work on my view of these situations.

[Ashvini Kumar Saxena]

I have been in reverse situations where massive applications were no match for newer web based application. And customer wanted to know what did we offer on the User interface front more than these small nimble applications. We then brought out strong points of our apps such as scalability, ease of integration etc. We said we do not compare with smaller apps but here are the reasons you should take ours. We also said that our approach was more methodical and evolved than our competitor. I am sure our small competitor would also have some good points.

The point is that customer is trying to decide between multiple vendors and its a good strategy to play off one against another. Do not fall in the trap and it is one way to bring down prices ( that is why the question "how much are you saving"). Show a definite figure and better is to show the value that you have created, bring out the intangibles, references from the department. Find out if your work has helped solve some problem that was nagging them. Compare with others only till you are comfortable because this battle will never end.
In the end client will evaluate you based on their criteria ( not much you can do there). So do your best and showcase yourself to the max.
Best of luck.
Ashvini

[businesssuccess84]

Thanks, All. Like mentioned, my best bet is to state the facts and illustrate the problems my firm helped them with and how much they are saving. In the end, the decision should fall in my favor if I show value and excellent service comes from my firm.

[Emma47]

Hello,

There are 3 very important aspects where you can compete your competitors, You need to work on these areas and make sure you are ahead of everyone in these. These important aspects are : QUALITY, SERVICE, EXPERIENCE.

QUALITY, and the creativity that helps to generate it, is the foundation of eSTYLE. We use globally accepted methodology and transparent, traceable customer involvement with our project work to ensure that the project is right from start to delivery. We support this with cutting-edge CASE tools, testing and bug management tools, and professional collaborative project management. Our process includes an Assembly Conveyor System for requirements, builds, and versioning management.

SERVICE is 24/7/365. Because of the ease of connectivity via phone, fax, and email, and the difference in times zones, you can be in touch with a knowledgeable English-speaking executive manager in New York or Moscow all day, every day. Need to make a specification change, get feedback on an idea, or confirm a delivery date? Just contact us anytime. Our goal is to exceed your expectations. Let us show you what a deeply committed vendor can do for you.

EXPERIENCE. We are a well-funded, stable global company that has been in business for more than ten years. We have successfully completed custom software development and sub-contracting projects for customers in the US, Great Britain, Switzerland, Germany and Russia. Our global business-sector clients, along with the Russian Central Bank and the Ministry of Defense, acknowledge our high standards and reliability.

Thanks,
Emma

[questeds]

Hi There,

I have worked in sales for the past 3years in a very cut throat environment. What I have found is that it boils down to what the customer actually wants/needs. This is the first point - does this new manager actually know what they need p tread carefully as your relationship is still pretty new. All the stuff the competitors offer may not ever be neccessary for their application. Don't feel you have to justify why you do or don't offer it, explain why they do not need it.
You are the encumbant, but do not take this for granted. Unfortunately, your contract is ending amist turblulent times, and companies are on the cost cutting path, and service often takes a back step. Focus not on where you save money, but where you add value, and ultimately make them more. Cost saving is all well and good, but only so much can be done. Revenue generation is a different story.
Make sure you display very clearly the value you have provided over the last 5 yrs, and play up that this has come from being the 'little guy' - to the big guy, they will be just a number.

Finally, prepare yourself for the worst. It sounds like you rely pretty heavily on this one customer, and you have to strategise for the outcome being negative - Hope for the best, prepare for the worst. Always be confident of your abilities, and do not try to hide your weaknesses, hit them head on!!!!

Good Luck!