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16/05/2011

Market Share Sugarcoat

When sales shrink, you can always argue "But we gained significant market share"....

When sales shrink, you can always argue "But we gained significant market share". That implies that one quarter was bad, but that for the competition it was even worse. And no one can prove it, because most competitors are not listed on the stock exchange.

One of our American competitors recently said this sentence during an analyst's conference... without first checking to see that we had grown approximately 30% in the same quarter. They should have known that; it would have only taken an inquiry to the manufacturers. But, we do not take pleasure in another's misfortune, so we will not pass our figures on to the analysts. Let the guys and gals in the US feel safe for now. At least until it is so obvious that it should be admitted... :)

02/05/2011

Gloating is not a good strategy

Just now a direct competitor of ours called me, because he wishes to buy something from us......

Just now a direct competitor of ours called me, because he wishes to buy something from us... that which we have on stock, and that which the manufacturer can only deliver in eight weeks again. My spontaneous answer was: "No". The reasoning behind this was that the same competitor let us down on a similar question not too long ago, and not so much because of strategic thinking.

Several have tried to keep only the top sellers on stock, and to help themselves to the rest from our warehouse. Ok, on the one hand I have enough of the product there. But it could also be the case that the supposed important regular customer (for which my competitor is trying his best to find the goods with us) makes a purchase, thinks Jarltech is really good, and we woo away a good dealer. Or, he cannot find us, the world will come to an end tomorrow, and we will have to sit on our stock forever. Throw into the mix that you undoubtedly meet each other now and again at manufacturers' events, and the colleague ends up spilling his wine on my shoes.

An alternative would have been a sale at "recommended retail price": Jarltech would have earned a great deal on it, and the competition would have paid on top of it. But, tell me, what is the good of gloating versus strategy?

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