Haters will punch holes in your idea saying “there’s too much competition.” What they really mean is you won’t be the only one doing X.
But competition is healthy.
Competition posits you aren’t crazy, that consumers are buying whatever you’re selling. And that’s a good thing.
Successful competitors, therefore, are the best proof of concept.
What we don’t always consider, however, are 2 types of competition:
- Direct
- Indirect
One might say Dunkin’ Donuts is a direct competitor to Starbucks because they inhabit the same block, hover the same price points, and roast identical shit.
That same person may also argue that Keurig K-Cups are an indirect competitor because the product is self-serve, tastes different, and has a significantly lower price point.
But price and proximity and materials don’t determine the type of competition, because competition isn’t defined by businesses doing the same thing or businesses doing it better.
Competition, rather, is competing for the same dollar.
If Dunkin’ sells 500 calorie pastries across the street from Starbucks touting a 175 calorie offering, the consumers who choose Dunkin’ are not the same consumers choosing the low-calorie option at Starbucks. That’s indirect competition.
Similarly, if you fall in love with Keurig you might invest in a better machine (perhaps even one at your office) instead of buying prepared coffee at Starbucks. That’s direct competition.
This introduces a key component of competition: context. So competition is defined by the unique relationship of the buyer and the seller, per transaction.
The indirect competitor on Monday becomes the direct competitor on Tuesday. The consumer who drinks Starbucks on Wednesday may sip K-Cups Thursday.
Competition, then, is validating, fierce and dynamic. But it is certainly not “too much.”
Let the haters know they’re mistaken.