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Creating your own competition

by funkynassau
5 replies
We sell a physical product and business is good, tho it can always be better. We are contemplating creating a new small online biz that is the same only different New name, same type of product just different kits, different packaging, and a different price. My son the biz marketing college graduate came up with this idea. The two sites would look different from each other. If someone thought our present site prices were too high, the potential new site prices would be a little lower and shipping would be added, rather than being included as it is now.

Has anyone done this with their products? Any feedback is appreciated.

Thanks,
Funkynassau
#competition #creating
  • Profile picture of the author Mikeyrooney
    Looks like you have a sharp Son to me! I think its a fantastic idea which I have implemented ....

    Look at some of the biggest companies like L'Oreal for example ... they have pretty much the same products for mass market (cheaper) as luxury products (expensive) these are pretty much the exact same products re-branded to target different consumers.

    I think you are on to a winner going down this route. M
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  • Profile picture of the author MikeViney
    Setting up a low cost alternative is a smart way to cover both ends of the market. Just make sure your prices and quality levels are clearly differentiated so the low cost doesn't cannabilize the mid level buyers from your premium product business. Best of Luck!
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  • Profile picture of the author AlexanderGER
    i think its a good idea as long as you market those sites in different ways and as long as there is no connection or even a link from each other. people must not find out that you sell same services for lower prices. so if you completely keep it different (different contact details and so on), it will work and customers will never be angry (i hope) ;-)
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  • Profile picture of the author alexcercel
    Awesome idea indeed. It's why we have auto concerns like Volkswagen. They sell almost the same car under multiple brands for different clients. This way you appeal to both lower paying clients and higher paying clients at the same time. Ofcourse you can always try to upsell the higher cost version of your product to those that bought the low cost version. If the products are the same but simple different in looks you might kill your higher paid version.

    Thanks,
    Alex
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  • Profile picture of the author funkynassau
    Thanks for the responses! We would want the two biz's to be totally separate and not a hint of commonality between them. They'd have to look quite different from each other.

    A long time ago a friend who was the manager of a big grocery store told me that Sani Flush toilet bowl cleaner and another brand who's name I forget, were made by the same company! Who knew? One was a fair bit more expensive than the other tho they were basically the same thing.

    We do plan to pursue this new idea and see how it goes. Currently we are holding a sale on the most expensive kit we sell, and the orders are coming in quickly :-) Gotta like that. $10. off is enough incentive for people, on a product that really isnt all that expensive in the first place.

    Thanks!
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    ChipFixx custom mixed auto touchup paint kits.
    http://www.chipfixx.ca

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