Smith runs a water-filtration business and was explaining how he actually does competitor analysis: he counts who is running ads, not who sells the same service. His claim is that the referral-based legacy companies in his market draw from a separate pool of customers that never overlaps with his. It is the reasoning behind watching cost per acquisition and review count rather than the number of firms in town.
…newness. Maybe they were started in 25, but nobody that's selling at $2,700 price point has been around for five years. So it's completely up for grabs in terms of who becomes the gold standard at our price point. And that's what our sole focus has been. How quickly can we get to 500 reviews?
…people want to try the new thing and they're already educated, right? Back to education. Like I feel like the ads could do even better there, but it's encouraging to me that you in you're in what might be a harder market and crushing it, right? So this is this really could be done in any market.
I 100% agree. I think the only thing that you have to be aware of is labor availability and it's the number of people that are advertising, right? When I do a competitor analysis, I don't look at how many companies sell the service that I sell. I look at how many people are actively, legitimately advertising because those are my only competitors. If you're not advertising, you're not my competitor. Yeah. You will get your market share and mine will be totally different. Nobody that was going to buy from me is going to buy from you instead. And nobody that was going to buy from you is going to buy from me instead. You know, the referral-based legacy companies, they will have their market share forever and they'll slowly bleed it out, you know, from the pinprick, but they'll be fine. I'm…
What are you seeing in the industry of how people are acquiring customers that are not called Facebook ads? Like, what are some other good acquisition channels for this industry?
I think Google ads will be phenomenal. I think it's really just all about not fighting for the densest keywords because that is where your big billion-dollar companies, that's where they pump all their money. You know, if you look up water filtration Raleigh, like it's going to be Coligan…
soft.