Supplier becomes your competitor

[treevet]

I have a trade supplier less than a mile from my house. Been dealing with them for over 30 years. They have everything just about you can find in Sherrill or other catalogs. They sell mulch and ferts and herbicides etc etc. They have serviced my sprayer.

Bout 6 years ago a fellow bought out the family owned business. He is a great guy and very personable but just a few weeks ago, having a good deal of extra space, he brought in a marginally competitive tree co. into his property, that he said is renting to. This is right on the border of my area of op.

Coincidental thing is a few months ago he asked me to "partner up". This to me was a compliment but I declined to act as I have been down the partner road and it was not a good ride. This has me thinking he has "partnered up" with this newly bought biz (by an accountant) that has a few nice pieces of equipment but posed no threat until MAYBE he is now in biz with this old established name biz (the supplier's).

I guess I could have someone call and ask if this supplier recommends a tree service in the area and see where they are at but it just irks me to even buy supplies there even tho it is so convenient to not go the snail mail route.

What do you all think and how would you feel if you have not already faced this dilemma?

 

[treemandan]

Life is a ##### and then ( if yer luckey) you die... and if you are really luckey the accountant dies first.
Try to take as much stock in your established clientel and do your best to keep at it. If it helps, rememeber what happened in your partnership and wait it out. You'll be fine.

 

[Slvrmple72]

Ain't that a kick in the nuts!

Treemandan, you offered some good advice.

Hang in there Treevet. The only good partnership I have had last over 13 years is the one with my wife.

 

[Sunrise Guy]

Ah, business, don't you just love it? All's fair in love, war and business, it has been said. I like the fact that I've kept small and don't have to be constantly hustling to make ends meet. I can't stand the secret deals, the under the table dealings that go into the grab for ever more money. You've been around a good long time, so as long as your client base is loyal, thanks to the great work you've done for them, I see no major problems ahead.

If I were you, and I knew the supplier was now giving your competition a leg up by recommending him to those who stop by his place looking for a tree company, I would still use the guy for his supplies, since it's a convenience for you, but I would certainly hold my cards very close to my chest when it came to talking shop with the guy when you needed to stop by his shop. The less he knows about your business, now, the better.

 

[treevet]

Ain't that a kick in the nuts!

Treemandan, you offered some good advice.

Hang in there Treevet. The only good partnership I have had last over 13 years is the one with my wife.

ditto on the only partnership Slvrmple.

I am not very concerned as I have a very old and extensive clientele but like Treemandan says it is just another sand trap in life.....do I now lose a very convenient supplier, friend, and gain another competitor?

I have fought off a meelion of em....we'll take them on with the same attitude.

 

[treeman82]

There's a company in my town that's been a fert company for almost 30 years. Landscapers would send their clients there because there aren't all that many options. The company was bought out by 2 of the employees, and they now cut grass. As soon as the landscapers found out about this, the fert company started losing work. I can say this much... the fert guys might be busier work wise, but from a profitability standpoint they are not doing well... lost a LOT of profitable work, in order to get some low paying work.

 

[treemandan]

I'd still buy stuff from the guy though I would be trolling for the gossip with a vengence as well a breaking his balls for a price cut.

 

[jefflovstrom]

Life is good!
Jeff

 

[ctrees4$]

Same thing happened to me...my good friend and machanic of 2 years that serviced everything i owned with a motor decided to partner up and go into the tree buisness.... buisness is buisness and compeditor is the enemy!:censored:

 

[treevet]

Same thing happened to me...my good friend and machanic of 2 years that serviced everything i owned with a motor decided to partner up and go into the tree buisness.... buisness is buisness and compeditor is the enemy!:censored:

you know it unfortunate....no matter how you try to look at it that is true. Adversary may be a better word than enemy, but who comes first? Family. You gotta pay your bills and so does he.

You can be pals with another tree guy in your area but when the chips are down and work is slow or he is dancing around one of your key clients....well friendships falter.

Latest trend is landscrapers dabbling in Man's work. Been that way for a long time but with the economy the way it is you need to keep an eye on just what your bud the landscaper is doing on your client's property (or where you refer them to).

Also often these landscape co.s come in with a treeco under their arm when they show up at your client's property for an innocent installation.

 

[ctrees4$]

All was good until he started using my bids to set his price. Im assuming he would get the po to call me for an estimate and then he would come in and work for a cheaper price.The funny thing is i knew this was going on so i low balled the estimates. Its always a good feeling to know the "enemy" will be running his equipment all day for peanuts just becouse he wants to be the cheapest in town. I give him or anyone else that runs their buisness that way 2 years before the fail.

 

[treevet]

Yeah and they will hate every minute of the 2 years and likely cause property damage and have injuries trying to always be the low guy.

It is kind of an interesting subject and I should have included "friend"....."relative"....."employee" .....etc. becomes competitor. It is much the same scenario.

I also think the flash in the pan, like the lowballer, often burns themselves out with all their names in neon lights, flashy financed equipment, mass expensive ad campaigns, etc. You gotta have a "in it for the long run" personality which not a lot of people have.

Also many that get pigeon holed into doing just one thing like crane removals every damn day often get burned out early as another example. People notice your longevity and versility and that counts big time.

 

[fishercat]

it is what it is.

may work out to your benefit someday.I can see your concern though.whether he bought that tree company or is renting space to them,seems kind of crappy to do to his clientel either way.seems like a conflict of intrest type thing to me.

as for partners,I am not a big fan of them.I seem to be the one who carries the load everytime .I do work with friends who are competitors often and that works out.we each have different skills and equipment so it works out nice.we don't look at each other as competitors really even though we are.nice to have a good relationship with others.

I won't say I will never be in a partnership again as I'm an optimist.I'm not sure what my future holds next year with me moving back to Tennessee.I know it's a different market down there but I love doing tree work so I will at least give it a shot.I am hoping at the worst I can sub my self out as a climber part time.I dread going back into auto repair.I don't even like to think of it as an option.

 

[mckeetree]

Latest trend is landscrapers dabbling in Man's work. Been that way for a long time but with the economy the way it is you need to keep an eye on just what your bud the landscaper is doing on your client's property (or where you refer them to).

You got that #### right. There is a certain landscaper around here I used to send a lot of work to until I caught the SOB trying to run under me on a deal.

 

[Sunrise Guy]

You got that #### right. There is a certain landscaper around here I used to send a lot of work to until I caught the SOB trying to run under me on a deal.

Time for cement shoes and a long hand truck run off of a short pier, Chicago-style.

 

[jefflovstrom]

I am not a part of these shenanigans!
Jeff

 

[treevet]

 

[capetrees]

Similar but slightly different situation.

Been dealing with a landscape and garden supply biz for years. I buy quite a bit of small equipment and supplies from him for 20+ years. I've always had a great relationship with the owner and he's even tried to offer me major employment in the company but I respectfully declined. I started concentrating on the tree biz and cannot shake this guy from giving all his tree work to a larger "green and yellow" company. I now have started to buy some of my equipment and supplies from others and he knows it. I'm hoping he'll try to lure me back by including me in the tree work.

 

[jefflovstrom]

I know my competitors.
Jeff

 

[sgreanbeans]

That sucks, I have the problem of training my competition!
3 times I have let go guys who went out on their own, now I have to compete with them, they suck, but still have to deal with them on bids. My rep gets me hired, even when Im the highest, Your a BAMF, you should feel no threat, just anger!
Your rep will out do them every time, and for those customers looking for the lowest, you dont want them anyways, unless of course ur eatin beans and rice!