Monday, May 3, 2010

Find your "Avis" - They'll Try Harder!

When choosing a partner, the conventional wisdom holds that you should pick the #1 player, the proverbial 800 lb gorilla - the Hertz of the industry. But in my experience, sometimes the guy who is #2 (or even #3 or #4) is often hungrier and therefore more willing to take risks and put more on the table - in short - more like Avis and willing to try harder.

Have you ever tried courting the market leader? How long did it take to get them to return your phone call? Ugh. Since they're #1, they are getting a lot of phone calls. They are probably the media darling and getting lots of press as well, and that combined with years of success sometimes breeds a certain amount of arrogance. I know I always have to "gird my loins" when making those calls, and the pressure is really on to have an exceptionally strong partnering proposal and compelling case. And even then, you might not get their attention.

When there's a #1 player that I really do want to win over, sometimes what's worked better for me is to go after the #2 or #3 player in the market. They are typically much easier to approach and they're hungry (they want to be #1!). They are usually more willing to take risks and try new approaches to gain marketshare over the larger players. So, as a result, they sometimes are more fertile ground for exploratory partnership discussions. Additionally, if you win them over and the two of you can build some success together over a period of time, you will be in a stronger negotiating position once (or if) you approach the #1 player.

Food for thought..

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