Beating your competition ?

Ghostwork Ink's picture

So my shop is located in Moscow PA... wheres that? Exactly!

Theres NO print shops up besides us; thats why my company is such a gold mine.

Apparently theres a new "middle person" screen printing company going up about a block away from my shop.
The guy knows 100% NOTHING about printing and such.
The only thing is; the guy is filthy rich.
He's come to me to get stuff printed last month and stuff, but i guess he'll be working with other people as well even though my rates are totally unbeatable.

Any tips on how to get people in your shop and how to advertise better?

thanks!

Location: 
United States

@Justin_PalmTees

Calibrated's picture

That positive thinking will take you along way. As a small business myself, in an industry with some big players its hard to carve out your piece of the pie. One major thing that has proven to be by far my best tool is to work on making my company and services the best that I can offer....There is always room for improvement and it takes time to build a credible business relationship with your customers.

I have found that working on what YOU have to offer your customers and ensuring that they understand what separates you from your competition is the best marketing system you can implement. Over the past 3 years I have been developing a new business system that will address virtually every issue that has arose with my business during transactions with my customers. Listen to them, make sure they get a sense that your willing to go that extra step (but don't let em walk over ya) and your sure to make your way with customers that place a value on your services.

Try giving him a better rate on accounts he pulls from out of state. it'll give him more reason to advertise internationally. let him deal with the shipping!!! Then he stays away from your local clientel.

stefanick's picture

whatever you do i wouldnt worry about him or make changes because of him...its harder to walk in and steal a customer than it seems.. if your customers are happy..there not going anywhere and if they bollt for a cheaper price than the go.remember he has to contract out the embellishing so your pricing shouldnt even be an issue.. trust your instincts and god.. it will all work out

Calibrated's picture

IF..as you say he has money to burn, they you are already on the losing side of this game and are in fact already falling pray to his game by getting you to spend money you DON'T have in marketing to YOUR already existing customer base.....Seriously, by your own admission you already have the home field advantage right? So why the worry?

As mentioned, do the unthinkable...Raise your prices. It will help in 2 ways.

1) It means a higher profit margin for your quality customer base.
2) If your customers ONLY care about low prices, than you will shed the bottom feeders.

Who will most likely go to your competition and make him work for fractional profits. All to often folks in this industry simply fail to use "basic" business principals. Lets face it, screen printers are NOT like Wal-Mart in that you can continue to drive down your suppliers for lower prices that give you a volume based price advantage. So to market yourself as "unbeatable prices" is in actuality one of the WORST ways to convene to your customers what your business has to offer them in a "price -vs- value" perception. Plus add to that the fact...you claim you have no real local competition, and really all you have done is convince yourself that you undervalue your own services.

This economy will sort out winners & losers in short order. As a supplier to this industry I can tell you that the losers so far have overwhelmingly been companies that built themselves on having low prices (lower margins) and when you have low margins it only takes a few bad months to bring the party to a halt.

Work harder at convincing your customers WHY you deserve their business, and the rest will take care of itself. If you work to convince your customers why they should not do business with your competition, than as mentioned above you will fall pray to a timeless business practice of making you work against your business interests.

Ghostwork Ink's picture

Thanks!
It's been a short while since i posted this thread and got a bunch of ideas from people trying to help me out.
Ive been printing for about 5 and a half years now and im only 19 with my own store front, its 100% tough for me because of "my age"..but since when does age play a role in what your good at and real about?
Turns out i am slowly inching my way up to the top; i did raise my prices a little, customers are happy in my area that i am the only printer that does "IN WORK" printing.. No middle man bull crap.
Hopfully by spring things will start getting nice and busy again!

@Justin_PalmTees

Robert Young's picture

Just my 2 cents mind you... if he is filthy rich he probably thinks you are doing quite well so he wants a piece of that pie. Now if he does not make money at it he will leave on his own since he is not doing this for charity. In the meantime I would suggest something radical... Raise Your Prices! Not out of the market, but closer to what he is trying to charge, so there is not a hugh difference in pricing... so he cannot say "you get what you pay for" type thing. I doubt he is telling many clients that he is just a middleman... since I would think people, especially in today's economy, would prefer to go direct when possible, so you just have to let potential clients know that you do your work in house and have the skillsets to provide them with quality.

Modern Embroidery Designer
volant-tech.com
volantfineart.com

Ghostwork Ink's picture

I agree and disagree..
My prices aren't 100% crazy low, but there definitely unbeatable compared to his middle man rates.
Theres a huge billboard right outside of his new shop, im thinking i should drop the money on it?
I'm totally going to start expressing the fact that all work is done on the premises in the shop, im also thinking about promoting we are the only printing shop in the area that offers direct low printing rates

@Justin_PalmTees

Ghostwork Ink's picture

Ah!
See there's a ton of schools in this little area and a lot of family owned local companys that all come to me for shirts because they don't want to pay the high middle man rates everyone else quotes them!
I think I'm just over thinking this whole situation, if my rates of unbeatable, my turn around is fast, customer service is great, and quality is good why pay more for the same thing 700 feet away from my shop?

@Justin_PalmTees

garagewear's picture

Before you go and spend money advertising or trying to out do him just do what you do best. In fact just do it better. Be confident that you are the best. Solidify your current customers. If someone leaves you over a few cents or to try out the competition you don't really need them. You may find that the competition draws a different group of clients. So what if he is the middle man. Get in on his action. Go offer him a contract printing rate that you can make money on. If you increase your business by 50% just by doing his work and keeping your customers it is great. Don't beat him up or down talk him. Build him up and work with him. You never know when you might need him!

Ghostwork Ink's picture

Your right on that.
The thing is i DO work with him..
He also wants to go after my fulltime customers (that isnt happening, there attached to me).
The town is too small for this much competition, esp someone as a middle man.
I do offer him contract rates, wouldnt it be better if i could get all the work my self though..

@Justin_PalmTees

garagewear's picture

If you get all of the work yourself then you will be too busy dealing with the customers to do the work.

Last year I started my own little sales force and didn't have to put them on the payroll as employees. I asked a few different people I know if they would like to make some extra money. I offered them 10% of anything they could send my way provided they stayed in the loop with the customer. I took it a step further and offered 20% to one mom that spends a lot of time at the school and ballpark. She does every bit of the sales work with the customer and works as the middle man. I bet 35% of my business has come from her this year. So I cut her a check when I get paid. I am able to focus on the shop, design and production and I am getting customers that I wouldn't have otherwise.

Ghostwork Ink's picture

Thats awesome!
I was thinking about getting sales reps and stuff; one of my buddys is a printer, he works for me part time when im real busy. Hes a great guys, and a REAL people person, hes covered in tattoos though, so he dosnt really think it would work out great for him.
Same with me i have tattoos on my hands and legs, i dont think people would take it as serious.
Who knows though, its worth trying to find someone to get me sales!

@Justin_PalmTees

garagewear's picture

Soccer Mom's bring you lots of soccer business. School class mom's are great for school business. If you have a big school nearby (500 - 1000 kids) Print up 2 dozen shirts with an awesome logo for the school and just drop it by for the teachers. Bag each one of them in clear display bags and put your card and a basic pricelist along with a sheet showing sample art. You just spent $50 or less on a great ad!

A few months from now you get a call from someone who says their wife brought this shirt home from school and they are interested in getting shirts to give to their customers. They happen to be a big automotive tool dealer that travels the area from dealership to dealership ... you get the idea.

Bill