Challenge
- Author:
- Chris Quickfall
- Business:
- Invate
- Published:
- 10/11/2008 11:14:00
When we started, our biggest competitor, the one who was turning over £5.5m, came after us quite aggressively, more aggressively than I calculated they would. We were stealing less than 5% of his business away from him but he dropped his prices by 35%. It was just to try and kill us off straight away.
Because we were a new company, we pretty much had to just sit and take the hit for a while. We knew he couldn’t afford to keep his prices so low for so long because he couldn’t sustain that type if loss.
As such we bankrolled the company on credit cards for a while, hoping that he would pull off from the attack. After four months his prices went back up which allowed us to start making money again.