[donnie514]

Hey everyone, just looking for a few opinions on a strategy that I'm not too sure about as if it backfires it can put me under by as early as September. For privacy reasons I will try and keep details to a minimum so hopefully my situation is clear.

I opened a distribution/importing business in the town of Edmonton however instead of opening up a brick and mortar place I decided to try something new(thanks to forum members) Only two huge companies do this in the States and I just did a Canadian copied version so instead I opened up an online shop with delivery service which is a first for Canada in my industry. I also took advantage of the super relaxed laws regarding food trucks and opened up a trailer that serves as my main marketing tool where I cut up my product and serve to the masses.

I can supply any order with any size (hotels, restos, work camps etc..) as I do not make any of the product myself and instead get them shipped from the best place in Canada (that makes my product) and for my other product lines I get them imported straight from Sicily and have plans to start shuttling product from Chicago and Mexico. I basically find the best company making this product and just buy from them in bulk instead of making a shitty/average version myself.

I also took advantage of the non existent Food Truck laws in Edmonton and decided to open up shop out of a 16 foot trailer hitched to my truck and also made an online store that offers the only delivery service in Canada.

My competition's product although inferior in quality AND price, they have big pockets, all the contracts, and the peasants of Edmonton have it ingrained in there heads to always go too these handful of companies when they need to buy this product.

The problem begins where during construction I made a few costly mistakes, and then few weeks after had a major blow which now my extra cash flow and safety cushion is totally gone (learning quickly).

Therefore I need to make a huge push to get popular real quick to start generating income and I don't mind stepping on a few toes to do it as Im in a make or break situation.

The plan is as follows

Park beside the biggest competitors and poach there customers by offering a better product at a better price. The law states I have to be 20 meters from them. I found spots beside the #1 and #2 people 22 and 27 meters away.

Nash Equilibrium Game Theory:
https://www.youtube.com/watch?v=jILgxeNBK_8

I know North Korea fronts like they are big and strong because they go against the USA even though there army is far weaker etc... I figure I can front like them that if I go against the biggest guys people will assume I'm big and strong as well even though I'm in the red and have my product stored at my buddies construction warehouse(totally illegal)...

Any thoughts on this plan? If it backfires I will probably go under. Any help/ideas/insights to spread the word/ get contracts is appreciated.

[eradicator]

I probably would need more information, what exactly are you storing at your buddy's warehouse, what is the fine for it, how likely is it that you, or he will get caught, how exactly do you think this will backfire.

I'd suggest you go ahead and do your food truck where ever you want, just make sure the truck really is 20 or more feet away from your competitors.

Why would you go under from parking your food truck next to the competition?

[donnie514]

(07-02-2015 01:25 PM)eradicator Wrote:  

I probably would need more information, what exactly are you storing at your buddy's warehouse, what is the fine for it, how likely is it that you, or he will get caught, how exactly do you think this will backfire.

I'd suggest you go ahead and do your food truck where ever you want, just make sure the truck really is 20 or more feet away from your competitors.

Why would you go under from parking your food truck next to the competition?

The storing is no problem. No way I will get caught. everything is in walk in freezers so 0 contamination. That Im not worried about that aspect.

Because the locals who live in Edmonton are heavy in the "Locally made" be nice to competition mindset. It has small town mentality. For example I went to this catering company that its OBVIOUS that my product is better, cheaper, longer shelf life, less prep time, and they still turned me down because there reason was "We make and buy everything local and like to keep it that way"

So if I post up near and make it obvious Im poaching, people can get offended and what not. I already got complaints about my instagram page on getting my friends to post my hashtag on them in bikinis...

[eradicator]

In that case, carry on and try to park near your competitors. Since it is a truck, you can try different days in different areas. If you get drastically more business in the new area next to your competition, then go there every day.

[mogsy]

Having repeat customers is where you will succeed if your product and service is superior, it will take time to build this.

Worth trying these hot competition spots if your at risk of losing everything in the short term and need to take some drastic action to turn things around

[donnie514]

(07-02-2015 06:31 PM)mogsy Wrote:  

Having repeat customers is where you will succeed if your product and service is superior, it will take time to build this.

Worth trying these hot competition spots if your at risk of losing everything in the short term and need to take some drastic action to turn things around

Yes long term my superior product will prevail its just in the short term I need a boost as "Winter is Coming" in Edmonton therefore need to get as much exposure/popular enough for my online sales to be enough to tie me down during that time as the food truck is a temporary aspect of business just so people know I exist.

[Dr. Howard]

beware, if they are a big/deep pocketed competitor they may know the local health, building, transport and bylaw inspectors and call and complain about your business to all of them and you will be inspected out the asshole and have to comply with 10,000 laws you never knew about.

[monster]

Parking right next to your competitors to steal their customers is pretty scummy and I would only do it as a last resort if everything else you have tried done has failed.

Business is like game: creativity counts.

[donnie514]

(07-02-2015 09:46 PM)monster Wrote:  

Parking right next to your competitors to steal their customers is pretty scummy and I would only do it as a last resort if everything else you have tried done has failed.

Business is like game: creativity counts.

Its low I can see that. But its also low/scummy how these competitors are charging ridiculous prices for terrible quality and service. The province of Alberta is plagued by 3rd rate companies pushing garbage product with high prices. In my eyes they are the scum bags.

They might hate me but customers love me as Im the only company to offer fair price, with a product that actually tastes great.

[Dr. Howard]

(07-03-2015 12:10 PM)donnie514 Wrote:  

(07-02-2015 09:46 PM)monster Wrote:  

Parking right next to your competitors to steal their customers is pretty scummy and I would only do it as a last resort if everything else you have tried done has failed.

Business is like game: creativity counts.

Its low I can see that. But its also low/scummy how these competitors are charging ridiculous prices for terrible quality and service. The province of Alberta is plagued by 3rd rate companies pushing garbage product with high prices. In my eyes they are the scum bags.

They might hate me but customers love me as Im the only company to offer fair price, with a product that actually tastes great.

If you were doing this in America I'd say 'take the high road' but Canada is a cesspool when it comes to business ethics. I wouldn't feel 'bad' about it, but would plan for retaliation.

[TheMaleBrain]

The plan sounds reasonable.
However - it is a short term strategy.

For repeat customers - give some sort of coupon to anyone who bought it offline - for an online deal.
That will help drive business where you want it.

Suggest you read Kawasaki's book about messing with your competitors.
There are some fine ideas how to go after the established players in a market.

Good luck

[BallsDeep]

I don't see what's scummy about this. The law says he must be 20 ft from his competitor, and he's 27 ft away.

In a free market there's no resting on your laurels. Is it also scummy if some tool brings a group of chicks on his table, and I come in to swoop?

Donnie says they serve shit food at outrageous prices, and he wants to change that. Sounds like Donnie cares more about their customers than they do. From my vantage point Donnie is providing a benefit to the community and should be praised.

Hope you kick ass Donnie.

[donnie514]

(07-08-2015 07:24 AM)TheMaleBrain Wrote:  

The plan sounds reasonable.
However - it is a short term strategy.

For repeat customers - give some sort of coupon to anyone who bought it offline - for an online deal.
That will help drive business where you want it.

Suggest you read Kawasaki's book about messing with your competitors.
There are some fine ideas how to go after the established players in a market.

Good luck

That's a nice little idea with the coupon. Done. Handing out cards with a coupon code they can type in at checkout for 19.95 off.

Soon as Im finished Gorilla Mindset I will read this as just the title is giving me the tingles.

Just like you guy's said, I got a phone call from the Health and Safety saying I have 30 days to get inspected. When I asked why since I was inspected 2 months ago... They said "To better serve the community of Edmonton and maintain high standards..." Seems like bad luck or somebody called them up.

[GlobalMan]

This is not how you build a customer base and establish yourself and your brand. I get your motivation, but this isn't the way man.