WTF! A guy is ruining my business!

If Clients are leaving you then they must not be getting their money's worth. Talk with the ones that left asked if they are satisfied or what you can do better. As for you current provide them quality service like people mentioned and communicate with them to let them know that there money is going far. Business want to see value in what they are spending on, show them that.
 
I was having about 40 clients using my service. I am running a WordPress MU and target small businesses to give the affordable price for them owning websites.

Because I'm using WPMU, I have various themes which are specializing on those small businesses niche. They're paying $50/month with me.

A guy is competing with me by using a very ugly truth of business mind. He's a web designer and is providing very cheap cheap rates of custom website design. He's charging $100/website and $10/month for hosting, domain name and maintenance services.

The most important thing is he aiming and targeting only with my clients (I don't know if I've done wrong with him in the past or not because I don't know him at all).

Because he's providing custom website design and monthly services with a very cheap rates and cool stealing my targeted clients, I've lost nearly 80% of my clients.

I don't want to compete with this kind of cheaply services, but I don't want this guy to ruin my business at all. Yet, how on earth that I could custom design a website for each small businesses with this rate, $100, as well as a $10 monthly services including hosting, domain name and maintenance?

While this is the lounge, just a head up and shout with this kind of jerky (I don't mean that I'm a loser who is losing the game and cry)!

he might be from a country that living cost is much cheaper than your country, and he can get lower rates...
if thats the case you have no way to compete with him on price

however you can focus on higher quality and richer customers.
 
Like what other ppl have said you could make it a bit more expensive, but provide some extra services. If the price is really low for the other guy he probably wouldnt want to spend more anyways
 
Haven't read the thread but call the guy up and see if you can JV with him.
If you can workout a compromise with the guy then maybe you both won't be losers.
You can either destroy him, or he will destroy you.
 
Let's take this to another dimension. Instead of providing services to your clients, why not try to make a product for yourself? Service = living, product = earning . sorry if you find this off-topic
 
Just focus on getting new clients.

Every business and every industry has competition - worrying about it will just help dig your businesses grave. Move on and put your focus on that.

There is ALWAYS going to be someone providing what you offer at a lower cost. Know how to get over that. SHOW VALUE. Show the clients why YOU are worth the price you charge.

But complaining about it won't help. Competition will always be knocking at your door.
 
I'm a photogrpaher by trade. I tell my clients up front that I am not the cheapest but you get what you pay for. Cheap phographer = cheap images. So be upfront with your clients and tell them they are paying for quality. Laso, you could offer something he doesn't, maybe give them free backlinks or other seo service that you can buy for a few dollars on fiver.
 
OK guys! After new year and had some parties with some business owners, I've decided to leave them for good. They just told me that they would like to go on with me as long as I am willing to add more services within the same price range. Yet, it's unreasonable for to do all the work to add such as SEO, Press Release, Driving more traffic and reputation management etc. What the hell they were talking? $50/month for all inclusive work? NO WAY!

I've called to make appointment with 5 companies and 2 of them already replied to see me and waiting for the respond from another 3. I think I run into another bigger business now.

Anyways, thanks everyone for your opinions!
 
That's terrible, hopefully you can figure something out and keep your business rolling.
 
I was having about 40 clients using my service. I am running a WordPress MU and target small businesses to give the affordable price for them owning websites.

Because I'm using WPMU, I have various themes which are specializing on those small businesses niche. They're paying $50/month with me.

A guy is competing with me by using a very ugly truth of business mind. He's a web designer and is providing very cheap cheap rates of custom website design. He's charging $100/website and $10/month for hosting, domain name and maintenance services.

The most important thing is he aiming and targeting only with my clients (I don't know if I've done wrong with him in the past or not because I don't know him at all).

Because he's providing custom website design and monthly services with a very cheap rates and cool stealing my targeted clients, I've lost nearly 80% of my clients.

I don't want to compete with this kind of cheaply services, but I don't want this guy to ruin my business at all. Yet, how on earth that I could custom design a website for each small businesses with this rate, $100, as well as a $10 monthly services including hosting, domain name and maintenance?

While this is the lounge, just a head up and shout with this kind of jerky (I don't mean that I'm a loser who is losing the game and cry)!


How the game goes. You cut alot of people out doing cheap $50 a month prices, now someone cut you out. How does it feel? Not to good huh, now that is how those other marketers felt when you undercut them
 
$50 per month for theme + hosoting and domain? Come one anyone would want to take it away. Think about big business and how they do it. All top hosting companies have a difference of $1 or 2 per month so no one can steal clients. Ony thing you can do is charge market prices or charge them for a whole year or so.
 
Time to move onto next big thing instead of complaining. The one who provides cheaper and better service would prevail.
 
Instead of the price, we have many competitors here. I'm not the one who are in the market. I have some competitors which are playing by rules, not to lower the quality and price. I don't mean that we have the rule to not lower the price, but we won't cheap our faces out by the deadly price tag.

$50/month, I really mean, is not cheap (I could say it's affordable and reasonable within my area) for these small businesses in my country; I doubt you've read my previous post where am I (small developing country in SE Asia).

It's the nature and I am not too deep into it because it's business of competition. Yet, it's my shout when I heard about the guy who is using this tactic from other competitors within our niche.

Anyways, because the contract is always revive or renew within December, most clients have the decision to renew the contract or not. I have no choice but keeping 20% the rest client and produce them more benefit and seek another bigger clients.

It's time to seek $500+ per month client now! CHEER 2014!
 
^How did he find out who your clients were to begin with to even steal them?
 
GOOD KARMA !

If you do good, good will return to you and if you do bad, bad will return to you.

Focus on providing excellent services and support. That should be a game you can win. Let his do what ever he wants to ! He lacks the creativity !

All the best mate
 
just ddos him and call it a day lol

Stupid fuc#king advice. Think of business as a competitive sport.

What does a major league baseball player do to keep his spot? He works his ass off. There are always new prospects and talent knocking at the door, drooling, waiting to take his spot. You work harder. Simple as that.
 
people are always looking to pay less for the same service.. its business. unless you take charge and run him out of business comparing with his rates you will not last
 
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