Know-How Exchange : Strategy

Experience has shown me, when I get a gut feeling as you have- they are usually right. It is odd that they opened up like that. I think they are being honest and not pretending-- but since you will be competitors, it's not a good biz decision to go forward.

I just re-read your post. First, do you really care if you offend them? 2nd, you can still be civil. Just explain after reviewing the potential conflict, it's a business decision to not move forward. Be upfront and I am sure they'll see you have a valid point.

In our business, we have a simple philosophy.

We do not see any competitors ONLY potential partners.

You are looking at only the negative side but not the potential gains that you can get from the partnership.

Whilst they may well learn from you during the tie up, you can also learn from them. use the experience to ASK TONS OF QUESTIONS. get up close with their staff and learn as much as you can about how they do their business.

You can steal just as many of their customers as they can of yours so there is an equal risk involved.

If they want to enter your market, don't run away because THEY WILL ENTER IT ANYWAY WHEN THEY ARE READY.

Instead, get close to them now, offer to help them enter the market, More players means the market is growing and joint marketing efforts can help to grow the market further.

Don't look at the negatives, dig deeper andsearch for the positves.

It doesn't mean that you are going to be married to these guys for ever, it just means that you are sharing some skilss, experience and a little data and receiving in exchange some of theirs.

If you run your business in an hob=nest and transparent manner, then you have nothing to fear.

DON'T RUN AS WAS SUGGESTED ABOVE :)) GRASP THE OPPORTUNITY TO GROW AND LEARN.

YOU CAN'T LEARN ANYTHING HIDING UNDER A ROCK :))

Good luck.

Matthew

No body said anything about running -- as in scared for the competition.

Sure, there is nothing to prevent competition. Competition is good-- its one more person getting the word out for your service. a good honest competitor is not a bad thing.

But there is no reason to be stupid. Your customer base is proprietary. It's a small world. The competitor will know a lot about you in normal course of biz. But there is no reason to simply hand them the keys.

It really throws up a red flag. I'd be more worried about him using your trade prices and selling below them to get the competitive edge than price fixing.

Competitors get each other price sheets all the time. Just to assure they are competitive- not fix the price.

When you do a good job in your niche it becomes a small world. In my mind, I have a feel for where my competitors will be price wise. And, your mutual prospects may share you proposal with the competing firm-- telling him to beat the price. It's going to happen. Just make him work for it. It sounds like this is a new niche for him. He doesn't quite know what the market will bear and wants you to do his homework.

Just say no.