What to do when competition moves into town

[Kay Nein]

http://smallbizsurvival.com/2013/07/what-to-do-when-competition-opens-in-your-small-town.html#comment-18142
I needed to read this. We just had our surprise inspection and the inspector said that someone is trying to open another B&B downtown. Right now, we are the only one. I've been stressing about it. But, I am confident of our level of quality, so I'm not sure where my issue lies. I think I might just be more upset about not being able to say we are the only one downtown.... No big deal, right?
The only good news so far is that our building has been a B&B so long that we got grandfathered in on most of the new regulations. The people trying to open up are struggling to be compliant and make renovations to meet those regulations. Should I feel bad that I hope they don't pull it off??

 

[EmptyNest]

Do NOT look at them as competition. Every place is different and there are plenty of people to go around for all
When and if it all happens, befriend them. Partner on things together..work together. We were a group of about 6 inns when we started ... most of us were new. We set up a group caledar, referred back and forth, did house tours for charity et. etc. Now there is only one of the originals left in business. Now it is everyonr foe themselves and no one works together..it is sad for me to see it this way. We were all such good friends.

 

[EmptyNest]

duplicate post

 

[Breakfast Diva]

As EmptyNest said, don't think of them as competition! You will be very different from each other and can partner in some marketing.
About 8 years ago another b&b opened in our nearest little town. I heard nothing from them, including that they were even there! From the get go they took the attitude of competition and to this day, pull dastardly tricks. I tried to change their attitude, but just couldn't. So, what happened? I NEVER refer to them. They're finally established after so many years, but I could have referred them thousands of dollars of business in just the first year.
It's much better to work together than compete.

 

[Kay Nein]

We already have a great reciprocal relationship with the other B&Bs in our area. They are all miles outside of downtown, but we support each other and send referrals back & forth. They welcomed us warmly when we took over last January. We've been grateful for their support.

 

[Copperhead]

EmptyNest is spot on. One thing to remember is that competition (if you want to call it that) is good for business. Marketing classes will tell you that is why B urg er K ing builds near Mick eyD's or We ndy's - they feed each other business.
When we opened 15 yrs ago there were 2 other B&B's in the area. One treated me badly from the moment we opened while the second one welcomed us with open arms, gave us SO much info and even guests. Sadly they are both out of business and I am the only one left. We have heard rumblings several times of another coming into play near me, but as of yet they have all fizzled before I knew anything more.

 

[gillumhouse]

K9 - Attitude adjustment time. Make nice. Welcome them with open arms and pray they reciprocate. I have been doing everything and anything I could to get another B & B in my city of 2300.
We could share marketing costs, take groups to big for one, AND it would help the economy of my city.This is the way I see it: ONE B & B can be anywhere, but if there are 2 or more, there must be something there to see and do. Oh please send them my way!!! I will help them find ways around any hoops that exist. YOU do not have any competition because the other B & B does not have YOU! Each will be different. You do not have competitors, you have colleagues.

 

[Joey Camb]

We have had a similar problem - they are building a 110 bedroom premier inn virtually across the street from me which is a good quality budget chain with a huge advertising budget.
However found out yesterday that they will have no breakfast and only 17 parking spaces for all those rooms! feel a lot better now!

 

[Highlands John]

Totally agree with others, better to work together. A new B&B has just been built down the road from us, we've known it was coming for a while as I'm on the community council so I saw the plans go through. They opened this week, already sent two people to them as we're full.
Competition is a great motivator too. Our room renovations which we started last winter, we've been talking about for a while, knowledge of this new B&B got us of our a**es and into action.
Similar with the trees between us and the lake as they block our view, been meaning to get permission from the land owner for years to cut some back, did it this Spring.

 

[Highlands John]

We have had a similar problem - they are building a 110 bedroom premier inn virtually across the street from me which is a good quality budget chain with a huge advertising budget.
However found out yesterday that they will have no breakfast and only 17 parking spaces for all those rooms! feel a lot better now!.

The budget chains have moved into Inverness in a big way in the past couple of years.
We were throwing around some marketing ideas the other day and I came up with this, not sure if it use it, but made me feel a lot better.

All prices as of hotel website, 17th July.

 

[Madeleine]

Competition can be a good thing. Another B&B could bring MORE business. When there is only one game in town there is a perception that there is nothing to do in the area.
What you don't want are a couple of 100 room hotels!

 

[JBloggs]

and they may have stayed with you. That is what will make you more nervous, and try to emulate all the great things you do!
They are not competition however, whatever they are, it won't be your place, and your innkeepers.

I know how you feel there is one opening (converting an historic home) into one a couple blocks from us. They can REALLY pull the historic card as it has one of the favorite generals of the Civil War Law Office on the property. It is also right next door practically to our hospital, so may get more that way (visiting Drs etc), or perhaps just more functions? They bought it for a bargain, they could have bought this stock lock and barrel, so they still have to add 5 bathrooms etc and tons of renos which cost big bucks.
I wish for you instead of dread, to be excited, they may be someone who can really boost your area, such as yourselves are doing! You never know K9!

 

[Generic]

I would say that if there is enough business for both, don't sweat it. If there isn't, then the thing to do is up your game, NOW. Make your reputation and product hard to emulate and better than theirs, so they are naturally the second choice.

 

[Breakfast Diva]

Here's what you don't do: (mostly obvious, but it's been done to us)
Don't ever say anything negative to your guests about them or other townspeople, even if you think it. Mumble and grumble to yourselves, but keep it to yourself. Things like that spread like wildfire in a small town.
Don't put a little dig about 'other places' in any of your marketing.
Don't make judgement claims about yourself in your marketing like "best, friendliest", etc.
Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do.

 

[JBloggs]

Here's what you don't do: (mostly obvious, but it's been done to us)
Don't ever say anything negative to your guests about them or other townspeople, even if you think it. Mumble and grumble to yourselves, but keep it to yourself. Things like that spread like wildfire in a small town.
Don't put a little dig about 'other places' in any of your marketing.
Don't make judgement claims about yourself in your marketing like "best, friendliest", etc.
Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do..

Great info BD.
I heard today an inn in a nearby city (that we go to and DH works in) is for auction. They had never called me back every time I called in the early years here. They have no web presence or social media, mostly ended up an event venue.
I would show you but cannot even find them online now. i thought early on there would be some comaradery, sharing guests or something, but never heard a peep. Now I am wondering if it is the same couple buying this place in our town, as they are said to have a B&B in that city... who knows. I will find out.

On the same note, Catlady - there is that B&B in Huddleston lakefront that closed up. They could not make it on functions alone, and could not sell as a B&B... They open, they close, they sit.
Sorry to hijack--

 

[Madeleine]

Here's what you don't do: (mostly obvious, but it's been done to us)
Don't ever say anything negative to your guests about them or other townspeople, even if you think it. Mumble and grumble to yourselves, but keep it to yourself. Things like that spread like wildfire in a small town.
Don't put a little dig about 'other places' in any of your marketing.
Don't make judgement claims about yourself in your marketing like "best, friendliest", etc.
Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do..

Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do.

Altho, it is very hard not to get upset when what they are copying is your website, word for word!

 

[Breakfast Diva]

Here's what you don't do: (mostly obvious, but it's been done to us)
Don't ever say anything negative to your guests about them or other townspeople, even if you think it. Mumble and grumble to yourselves, but keep it to yourself. Things like that spread like wildfire in a small town.
Don't put a little dig about 'other places' in any of your marketing.
Don't make judgement claims about yourself in your marketing like "best, friendliest", etc.
Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do..

Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do.

Altho, it is very hard not to get upset when what they are copying is your website, word for word!
.

Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do.

Altho, it is very hard not to get upset when what they are copying is your website, word for word!

NOOOO, that would not be acceptable!

 

[Breakfast Diva]

Here's what you don't do: (mostly obvious, but it's been done to us)
Don't ever say anything negative to your guests about them or other townspeople, even if you think it. Mumble and grumble to yourselves, but keep it to yourself. Things like that spread like wildfire in a small town.
Don't put a little dig about 'other places' in any of your marketing.
Don't make judgement claims about yourself in your marketing like "best, friendliest", etc.
Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do..

One thing that's getting to me right now is that this "competition" is stating on their new website that they are "the highest rated bed and breakfast in XYZ county". This is totally false! I'm biting my tongue because it's not worth confronting them. It really gets me though!

 

[Madeleine]

Here's what you don't do: (mostly obvious, but it's been done to us)
Don't ever say anything negative to your guests about them or other townspeople, even if you think it. Mumble and grumble to yourselves, but keep it to yourself. Things like that spread like wildfire in a small town.
Don't put a little dig about 'other places' in any of your marketing.
Don't make judgement claims about yourself in your marketing like "best, friendliest", etc.
Don't get upset when they copy you...it's a compliment and they can't do it nearly as well as you do..

One thing that's getting to me right now is that this "competition" is stating on their new website that they are "the highest rated bed and breakfast in XYZ county". This is totally false! I'm biting my tongue because it's not worth confronting them. It really gets me though!
.

If they don't mention where they are the highest rated and guests find them on TA and other rating websites at 4th or 5th place they'll wonder what else they're making up.
We have a couple of places that jockey for 1st on TA but one of them never takes it off their website when they're in 2nd place.
Another place, now closed, used to call itself the 'premiere' B&B. Not only were they not the best, they were not the first either, so making it up as they went along.

 

[Joey Camb]

We have had a similar problem - they are building a 110 bedroom premier inn virtually across the street from me which is a good quality budget chain with a huge advertising budget.
However found out yesterday that they will have no breakfast and only 17 parking spaces for all those rooms! feel a lot better now!.

The budget chains have moved into Inverness in a big way in the past couple of years.
We were throwing around some marketing ideas the other day and I came up with this, not sure if it use it, but made me feel a lot better.

All prices as of hotel website, 17th July.
.

we don't have competition with our travel lodge - this is why - http://www.tripadvisor.co.uk/ShowUserReviews-g187046-d308697-r13607487-Travelodge_Harrogate-Harrogate_North_Yorkshire_England.html
as a rough guide this is pretty standard for every review and every weekend -
Noisiest hotel we have ever stayed in, abandon all hope of getting to sleep before about 3am if you are at the front of the hotel, tried earplugs but too much noise for that.
Nightclub opposite had around 70 people on the pavement singing & shouting !