Competition? What Competition?

The "cost of entry" into the promotional products business is pretty low. To be an independent rep you basically need a phone and some time. To buy and sell, you need a very few dollars in the bank. Even barber shops need more up front capital, education, equipment and licensing than is required in our industry.

When you have a minimal cost of entry, you tend to have much more competition. And even if much of that competition is lightweight, it can still effect your business. Anyone who has been in this business more than a week has had some beginner undercut their bid because they didn't know what they were doing, or because they only needed to make a few dollars on the deal for extra spending money.

Even the professionals can act pretty amateurish from time-to-time, creating real problems with your established relationships. Then, of course, there is buyer rotation. The buyer you've been romancing for two years goes on to another job, and the new guy is trying to prove what a great cost-cutter he is. So he buys 10,000 pieces of swag from your competitor to save $200.

How do you stay one step ahead of the amateurs and the sharp shooters? By being intimately involved in solving the needs of your customer. Lets leave this post at that for now. Use the comment section to suggest methods you use to become so close to your major customers that they would never leave you or forsake you.

Later, in another post, I'll fill in any blanks with my ideas.