Cooperation versus competition

Us soloists are busy and time poor. Unless you are outsourcing there will come a time whereby you have capped your capacity to serve your clients. When you reach that point, what are your options? This article looks at cooperation versus competition.

As a management accountant, and solo flyer, I am fortunate to keep in close contact with my ‘competitors’ both locally and nationally. Without them, I wouldn’t be able to offer and maintain the service I do.

When weighing up cooperation versus competition, I treat my competitors as my peers. They are a technical resource, provide support during busy times and back-up for when I go on holiday.

My role typically involves a lot of problem solving. Using my competition as a sounding board for clients issues or case studies can save a massive amount of time.

Having a good relationship with them means I’m never out of touch. For example, I just received a manual in the mail from a competitor who went to a conference and picked up some extra manuals and thought I would like some. Yes thanks …they came in very useful.

I try to offer similar assistance when they need it. The call I took at 7:30am this morning was from another competitor who needed help installing a new upgrade at a clients site.

I just sent a text to Competitor X: do you know your email is bouncing? And I forwarded an e-newsletter to Competitor Y that I thought would be of interest to her.

I will also send business their way when appropriate. For example, I may suggest a client deals with my competitor who has more experience in certain areas, or perhaps comes from an industry I would rather not deal with.

I keep abreast of competition in my area, and drop an email to anyone new.

Naturally, there are some competitors that I do not share with. If I feel uncomfortable with their modus operandi, or the relationship is weighted in one direction, I will keep my distance.

However if I visit a client’s site and learn they have previously dealt with my competition, someone whose work I have confidence in, and the client starts rattling off a list of complaints about that consultant, alarm bells ring. Experience has taught me that a client who complains may have unrealistic expectations, may not be receptive to receive and act on specialist advice, or may simply be a whinger.

In July 06 the CEO of Pepsi called the CEO of Coke to inform him that someone was trying to sell them the secret Coke formula. These fierce global rivals have a healthy respect for one another.

Good reliable competition is an invaluable resource. What are your thoughts on cooperation versus competition? Do you see competition as friend or foe?

Heather Smith, an MYOB Certified Consultant and Specialist Trainer, provides business management software solutions which generate accurate and timely financial information that the business owner can use and understand.

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Competition is usually challenging for us; particularly locally. We are friendly with some of our "not direct" competitors and they usually give us a heads-up on our direct competitors changes. We would like to be more friendly with the other local screen printers, but some have proven to be untrustworthy, so why bother? On the other hand, we are working hard to lift the name of screen printers, so we will all benefit in the end. -Jess, www.zulugraphics.com.au Jess from Zulu Graphics - Best Screen Printer in Newcastle
I like your attitude, Heather - whenever a new client complains about previous advisers or her/his sales team, subsequent investigation usually reveals the boss to be the problem. Do, however, remain conscious of http://www.austlii.edu.au/au/legis/cth/consol_act/tpa1974149/ (I'm not a lawyer, but Part IV especially?). Grant Hyman from Sydney | Read my articles
I view competition as a healthy part of business. I welcome it. But I try to keep it in perspective. I'm in advertising and not every account is for me, it does me no harm to recommend a competitor if it is an account I would not work on.
I believe cooperation is just as important - I can't do it all and there are times when I may need to call in someone who I normally would be going up against. I am very selective of who I do this with but I have found that it really helps my business.
I have found that you never know where cooperation may lead you. Derek Walker from Dallas, Texas USA
Great article!!
Industry based forums such as this are invaluable networking and marketing tools. Participation in them can only see our skill and knowledge base increase. We live in a world where information is now so readily available, that knowledge is not necessarily the sole differentiator in winning and maintaining business. We need to provide our customers and clients with services and products that are relevant to their needs (not what our perception of their needs is). By sharing information within the industry, I find that if I dont have the knowledge or experience to meet my clients needs, I can often direct them to somebody who can. This only leads to greater customer confidence in what we do, which in itself becomes a value proposition for my clients to continue to utilise my services (or the services of others who I can recommend due to business networking).
I network with my "competitors" on a daily basis. They are my biggest business allies. Cassandra Scott (Laurus Enterprises) from Forest Lake
I believe there is room for cooperation and competition. Not that I subscribe to situational ethics, however I do believe we need to respond appropriately to a given situation.
Catherine White - My Divine Occasion Catherine White from Sydney
Yes, I agree. I'm not really aware of having any competitors, as such. If a job's just right for me, I'll probably get it. If it isn't, I'll likely pass it on to one of my network of trusted professional peers anyway. And vice versa. We collaborate on all sorts of levels - that's why I started the Joomla! User Group. It's GREAT! I don't know how I'd keep going in this business (open source CMS) without their support. dinah from sydney

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