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What to do about seemingly large competitors online?

ANR

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I want to create an online store selling home kits in the aquaponic and aeroponic market.

There are already a fair few big online shops around, namely:

http://theaquaponicsource.com

There are also many other general aquaponic and aeroponic stores a google search away.


1) Should I be put off from this level of competition?

2) Are things like google ads enough to draw attention away from these 'big players'?

3) Would finding a specific niche be better than mimicking those stores out there and just trying to do a better job?

Thanks in advance.
 
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theag

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1) Should I be put off from this level of competition?
Every business thats making money will have competition. So no.
2) Are things like google ads enough to draw attention away from these 'big players'?
Sure, if you can outspend them.
3) Would finding a specific niche be better than mimicking those stores out there and just trying to do a better job?
"Mimicking and trying to do a better job" is a bad business plan. You need to need know that you'll have an advantage before you go in. Better products, better prices, better service, etc.

Btw, those guys are probably scared shitless by Amazon taking sales away from them.
 

Vigilante

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I want to create an online store selling home kits in the aquaponic and aeroponic market.

There are already a fair few big online shops around, namely:

http://theaquaponicsource.com

There are also many other general aquaponic and aeroponic stores a google search away.


1) Should I be put off from this level of competition?

2) Are things like google ads enough to draw attention away from these 'big players'?

3) Would finding a specific niche be better than mimicking those stores out there and just trying to do a better job?

Thanks in advance.

Be cautious about selling identical merchandise, as you can't compete on price.

You have to find an ANGLE. A reason to exist.

I opened some retail stores a few years back.

The stores existed because I liked the merchandise.

However, we didn't do anything any better than anyone else did.

I sold the stores at a loss 18 months later.

You have to have a REASON.

What's your REASON? What is your value? Almost half of businesses that fail report the reason they failed was that they didn't have a reason to not fail.

I HATE the design of the competitor you linked to, by the way. Terrible feeling web site. The email offer at the top is likely super effective, though.
 

brickco

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I have a question for you. If I was buying these products for the first time, how would I know if that's a big online shop or not?

The point I'm making is, they're not really a big competitor. 99.9% of the people in the world don't know who they are and if they're looking for products online, they will not have any sweet clue how big the companies are.

I bought tea recently from an online retailer and I figured they were huge judging by how professional their website was, etc. When I got my order, I got a nice hand written letter saying I was their biggest order yet (and it was $50).
 
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Aaron W

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I'm straying a little bit away from your overall question here.

But it still applies.

If you are breaking in to this market its good to have competition: it means there are customers wanting to buy. But still do the research to validate this point.

Google ad's are not enough to draw attention. You need a value proposition, why do people want to buy from your new store instead of the old trusted ones who are providing value in various ways such as their eBook:

uqZ6dpN.png



Think of it like Uber, there value is: cheaper and faster taxi's with ease. You click a button. Can request music. Get two free rides on sign up.
Normal taxi's you have to call, they're (generally) unfriendly (where I live), more expensive etc...
 

Vigilante

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Here's what I would do:

"Sign up for our club for $24 a year, and you will receive from us every month for 12 months a FREE product worth at least $10.00 retail. You'll get $120 worth of merchandise from us for $24, and a 10% discount on anything you buy from us during your membership period."

You then have their permission to talk with them 12x a year, in their mailbox. They'll look forward to getting a package from you. They'll buy from you. One sale and you will cover the delta between their membership and what you owe them in freebies throughout the year. You only need them to buy from you ONCE to break even. TWICE and you're profitable, and you have a YEAR to convert. Plus, you have their $24 up front to buy merchandise for the giveaways, and they have an incentive to buy from you for the discount.
 

theag

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Here's what I would do:

"Sign up for our club for $24 a year, and you will receive from us every month for 12 months a FREE product worth at least $10.00 retail. You'll get $120 worth of merchandise from us for $24, and a 10% discount on anything you buy from us during your membership period."

You then have their permission to talk with them 12x a year, in their mailbox. They'll look forward to getting a package from you. They'll buy from you. One sale and you will cover the delta between their membership and what you owe them in freebies throughout the year. You only need them to buy from you ONCE to break even. TWICE and you're profitable, and you have a YEAR to convert. Plus, you have their $24 up front to buy merchandise for the giveaways, and they have an incentive to buy from you for the discount.
Awesome. My brain is on overdrive right now on how to apply this to my business. Rep++

Edit: You da real MVP, Vig.
 
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AllenCrawley

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Here's what I would do:

"Sign up for our club for $24 a year, and you will receive from us every month for 12 months a FREE product worth at least $10.00 retail. You'll get $120 worth of merchandise from us for $24, and a 10% discount on anything you buy from us during your membership period."

You then have their permission to talk with them 12x a year, in their mailbox. They'll look forward to getting a package from you. They'll buy from you. One sale and you will cover the delta between their membership and what you owe them in freebies throughout the year. You only need them to buy from you ONCE to break even. TWICE and you're profitable, and you have a YEAR to convert. Plus, you have their $24 up front to buy merchandise for the giveaways, and they have an incentive to buy from you for the discount.
I was just talking with my wife last night about this very thing. Scary.
 

Almantas

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Hire a Hitman.

On a serious note, bear in mind that most large competitors do not have individualized customer service and don't know what's going on on the ground (i.e. they are slower to react to changing local customer demands). Think...why do some small business thrive... because they ENGAGE with the audience, pay close ATTENTION to their needs and QUICKLY act on them.

Good luck!
 

Vigilante

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I was just talking with my wife last night about this very thing. Scary.

She told me. ;)

This is simply the wholesale club model, applied to a different industry. You buy the membership, get more than your membership fee in value guaranteed, and get an incentive to not shop anywhere else. The consumer psychology has you coming back, wanting to get your moneys worth.
 
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Last edited:

ANR

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The stores existed because I liked the merchandise.

Hit the nail on the head. Its a market I am interested in personally and liked the idea of having a similar online shop and not because I saw a need.

Thank you!

"Mimicking and trying to do a better job" is a bad business plan. You need to need know that you'll have an advantage before you go in. Better products, better prices, better service, etc.

Makes me think finding a specific section of the market, like a "family starter kit" with all the information needed would be a better option. That way I could concentrate on finding those products at a cheaper price than offering everything to the whole market.

Thanks Theag

I have a question for you. If I was buying these products for the first time, how would I know if that's a big online shop or not?

I bought tea recently from an online retailer and I figured they were huge judging by how professional their website was, etc. When I got my order, I got a nice hand written letter saying I was their biggest order yet (and it was $50).

Thank you Bricko.

That is true, a fancy front page is no indication of actual size. Couldn't agree more, a hand written note instantly makes me want to give feed back to promote the business. I see allot of people on the handmade market etsy.com doing that.

Here's what I would do:

"Sign up for our club for $24 a year, and you will receive from us every month for 12 months a FREE product worth at least $10.00 retail. You'll get $120 worth of merchandise from us for $24, and a 10% discount on anything you buy from us during your membership period."

You then have their permission to talk with them 12x a year, in their mailbox. They'll look forward to getting a package from you. They'll buy from you. One sale and you will cover the delta between their membership and what you owe them in freebies throughout the year. You only need them to buy from you ONCE to break even. TWICE and you're profitable, and you have a YEAR to convert. Plus, you have their $24 up front to buy merchandise for the giveaways, and they have an incentive to buy from you for the discount.

Vigilante, wanted to spread some rep out between the two posts but it piled it all onto the first one. Big thank you.

Really feel like this would be a great combination with concentrating on a smaller section of the market and giving them everything they needed.
If I was to offer a starter kit for parents and kids there would be loads of free products I could give them which would help them expand their aquaponic set up (extra pump filters etc). Plus opening it every month with the kids would keep the kids engagement up as well. That would stop it becoming a long forgotten project in the loft and could lead to customers years (maybe generations) down the line.

Getting excitement back!

Google ad's are not enough to draw attention. You need a value proposition, why do people want to buy from your new store instead of the old trusted ones who are providing value in various ways such as their eBook:
This market has TONS of room for information products to increase the value proposition. Everything from set up to maintenance to increasing size. Thank you Aaron for highlighting that!

Hire a Hitman.

Ill get right on it! And get right on with engaging with the customers too! Thank you Almantas!


Guys massive thank you for your time. If it let me go into minus rep everyone would be getting some! Can't wait for the day I can return some great info!
 

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