Advice on competition

[9tendo]

I own a video game console repair shop thats pretty well known in San Diego since 2003 and recently expanded to a bigger shop in the same building last year. A week ago, a similar business moved in to my old location and started undercutting me on craigslist and telling people that I went out of business.

This immediately caused me to cut my prices even lower than his. I don't feel good about doing this and I don't know what I should do. It's stressing me out. On one side of the coin it's motivating but at the same time it's causing me to do things I don't want to do. What should I do in this situation. He's starting to take personal swipes at me in his ads such as "Friends of Fred Friday Special" which is enraging you can imagine.

[KMDAS]

Keep providing quality service, make your price competitive, but still worth your while and tell your satisfied customers the truth about his tactics (without whining to them or defaming his character). If people realize he is a liar they may not want to trust him with their belongings.

Also give him a call and politely express that what he is saying is untrue and you ask that he retract his previous statements. Prior to this you should print all of the ad's he has on craigslist's and gather any other written or spoken information regarding this matter.

Then if he refuses you can express that this is Libel and is affecting your business. If it is truly affecting your business then you may want to consult a lawyer.

Good luck always maintain composure and never sacrifice profits over some feud.