[Jewelry making - Article 00335] - Re: [Orchid] What to do about competition spying?

[Karen Goeller]

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Daniel,

>     With the amount of arts support in this country, IMHO, an "artist"
>     chooses to starve in today's society. With the number of
>     institutions offering (business) courses to anyone willing to take
>     them, it's incomprehensible to me that anyone starting a small
>     business doesn't take advantage of them and first find out what's
>     involved. Run your business properly, stay ahead of the curve,
>     don't depend on one design and you'll do fine. Ignore proper
>     business procedures, get stuck in a rut, and blame everyone else
>     for your bad luck and you'll be one of the statistics. 

    You are quite right that most small businesses fail due to lack of
    business acumen, planning, and execution. That's a point I'd never
    argue. However, the "walmartization of business" in America has
    definitely made the business environment MUCH less friendly to small
    businesses in general. In fact, even very savvy small/independent
    businesses may NOT "do fine." 

    It is unfortunately common in today's environment for a cut-rate
    chain store (which is what this competitor sounds like from the OP's
    description) to move into an area and undercut independents through
    predatory pricing, outsourced production, etc. They offer merchandise
    incredibly cheaply (selected through various spying tactics) that is
    just different enough that they can beg fair competition and avoid
    copyright infringement lawsuits... or they may be offering
    merchandise that is far insuperior in quality to the educated eye but
    is flashy enough to fool the general public. The prices the chain
    sets are well below their cost when they are penetrating a market,
    supported by the profits from another area where they're already
    established. The end result is the same. The independent cannot
    price fairly for their work and cannot market effectively in that
    environment to enough of an audience to compete and remain in
    business. Once the chains have driven the independents out of an
    area, they're free to raise their own prices and limit their own
    offerings to increase their profit margins, and they start the cycle
    again in the next targeted community. 

    I would love to see independents (bookstores, bakers, coffee shops,
    jewelers, clothing stores, grocers, whatever!) stand up to these
    guys wherever possible and not roll over meekly and allow it to
    continue. When you see a walmart-wannabee trying to develop
    him/herself in your town, don't do anything to make it easier for
    them! Call them on it. Raise consumer awareness, because it is the
    consumer who will lose in the long run. Look at your own personal
    buying habits and figure out whether they are supporting this trend. 

    That was the point I was trying to make. It's something that I feel
    passionate about (obviously) and that I feel is going to seriously
    injure the diversity of the arts market (and other markets). 

Karen
No Limitations Designs
Hand-made, one-of-a-kind jewelry
www.nolimitations.com
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