Stama - SOrry to hear about your situation, it sounds very frustrating. We have a similar conversation about same-street competition going on in this thread: http://community2.business.gov/t5/Other-Business-Issues/Business-competition-on-the-same-street/m-p/5738/highlight/true#M549 Another option, aside from the ideas given in that thread, is to strengthen your own business to become more competitive. Here are two brief articles that offer some tips: 5 Tips for Getting to Know Your Competition and Using it to Your Advantage Forget Competition - It's Time for Co-opertition Good luck, and please keep us posted.

That is a really bad situation, time to take steps to try and save your customer base! -Do you have a loyalty or rewards program? My dad went through something similar when he owned a Dairy Queen and a Dippin-Dots opened in the same mall. He really tried to keep the mall employees (his most consistent customers) by offering 25 cent sodas and a few other extras, like opening an hour early. I don't know exactly what the right answer is for you, but if you can hold them off for about 6 months the competition usually ends up going away.

The first thing to do is to use a 'shill' (someone unrelated to your business) to go to their business and get service. Have the shill say that he has a car service and wants to know what kind of deal he can get. From that, you will get the retail and discounted price list. Move from a passive marketing strategy to a proactive one. Don't just make yourself pretty and wait for customers. Contact all the local limo services and offer a special deal to do all their black cars- (Lincolns) for a special price. Create a special subscription service called the Quarterly Cleanup. For a sum of money paid up front, car owners can get a discounted special car wash. You lose a little in sweat but gain in up front payment. Invest in a steam cleaner and offer it as a self-clean alternative for those car insides that are truly dirty. Think out of the box.

Thanks for chiming in MarkAse and Riverasierra! Stama - I hope you find their tips helpful. Please keep us posted on your progress.

The best way to begin is to think about what the customer wants. Let the other carwash throw out discounts and promotions without thought to the demand for these particular giveaways. Also, figure out what they are not offering and, if needed, offer that service. Just as good, about two months ago, a client called in and they sold really professional signs that saw a dramatic increase in their clients' revenue stream upon purchasing. This may be something you want to look into.

There is a great book on persuasion and in it, the author mentions about being guilty by association. For instance, weathermen have had their lives threatened before if it doesn't stop raining. Now, it is obviously the fault of the weather service providing that information, but people don't think of this. The reason why I thought of this thread is because there is a study on the sale of cars in relation to have pictures of women in them. Now, would you think that it may be good to have a picture of a teddybear or a Road-runner type character as people may associate the first as warm and friendly and the second as a carwash that is fast. Hope this is helpful!

I'm gonna be straight up here. It won't matter how much you improve your service and it won't matter how much you drop your prices. Your earnings will definitely reduce because of this. The only way to keep your earnings intact or grow it is to add a supplementary business to your current one. Think about all the things that can completement your current offering. You could also consider handing out 6 month or 1 year prepaid cards that customers can use while availing your offering. This way, at least some customers will be locked in with you.

if competition happens then customers are lucky. Since drop down prices will occur. But no matter how cheap those prices of your competitors if you got loyal customers who were satisfied by yours services before. Then for sure they will still be there. They can be your edge over your customers. Another move you can take advantage among those competitors of yours is by adding good quality services and listening to customers feedbacks. In this way you will be able to target things and ideas regarding what your customers wants.

Sorry to hear that competition is moving to your doorsteps. Some businesses follow a strategy which is similar to a restaurant locating near McDonalds because McDonald's has done all the research for the location in determining if it was a good location.