Here are ten things you should expect when a new competitor opens close to your center or school:
- Private chatter amongst your parents.
- Private chatter amongst your staff.
- Both parents and staff asking you what you think of the new place.
- Your new competitor will check your tuition rates and business practices.
- Your new competitor may try to hire your staff members–anyone from your cook to your Director.
- Some of your parents or staff may leave and go to the new center.
- Some of your parents or staff will come back from the new center.
- Some new competitors will undercut your tuition rates initially, and then raise their rates after they get established.
- The opportunity to check your competitors practices and potentially improve your own business practices.
- More potential new clients as your competitor brings new traffic to the area.
The ten items above are very normal, and each can be managed effectively. Many of your strategies will be based specifically on your market and the similarities and differences between you and your new competitor. Oftentimes, competition will push us to be better than we thought we could be.
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