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Ask HN: Should I Meet With My Direct Competitor?
I'll save the full story for another time, but incredibly two things happened at a Halloween Party in Bombay:
1) The brother of the founder of my web app's chief competitor was there
2) We made that connection
He suggested we meet. My question: Should I meet face to face with the CEO of my chief competitor? If so, how do I approach it?
Pros: Could get his perspective on industry, have an interesting conversation, make a contact that could potentially help me.
Cons: May inspire preemptive competitive response. I'm not sure its good to alert someone before you throw a brick at them.
Here are some facts that may or may not be relevant:
1) I have a prototype ready, have raised some seed capital and will be raising a bit more shortly. I don't expect to launch the product until at least February. The competitor site is well established with 20M uniques per month.
2) They address a different niche in the market, though we overlap some (think Macy's versus Patagonia). They've positioned themselves for a different portion of the market, and appropriately addressing my niche would cannibalize their bread and butter. But I'd hate to underestimate them.
- michael_dorfman 16y agoMaybe it's me, but I don't see the downside to meeting him. It's not a good idea to alert someone before you throw a brick at them, but it doesn't sound to me like you are throwing a brick at them. You're addressing a different niche, and without knowing anything about what industry you're in, I'd bet dollars to doughnuts that the number of customers you are going to poach from each other is miniscule compared to the number of potential customers that are not buying from either of you. In my last start-up, I had a good relationship with the CEO of my major competitor, even though I disrupted what was a very comfortable situation from him, and took a lot of business away from him-- and we were battling for the same, very small niche. I had a lot of respect for him, and entertained take-over proposals on several occasions. So, my two cents: go for it. Be respectful and humble, share only as much as you are comfortable sharing, but be honest in what you do say.
- onwardly 16y agoI think that's good advice and aligns with what my gut is telling me. You never know what one thing will lead to, and its certainly nothing personal, so why not. In terms of the number of customers we'd poach, there are definitely some. One nice aspect to this startup is that the goal is to bring new customers to the market, rather than poach customers. Apologies for not divulging more details, and frankly they are pretty relevant in this situation. But it seems like this is a common issue and something that lots of people might have experience with.
- benvanderbeek 16y agoQuestion: does the other guy see you as a "direct competitor?" If he has 20M uniques per month he may not feel all that threatened (whether or not he should). I'd say he has more to lose than you. Most likely even if he understood 100% what you were trying to do, he wouldn't be agile enough to address your niche. I'm with michael_dorfman, don't see the downside. Edit: typo.
- lukevdp 16y agoAs long as you're clear in your mind on what you can't say to him BEFORE you meet with him, I think it's a very good idea.