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I've worked part-time as a pet nanny for the last three years. My main competitor has had an established business for nearly 10 years. I feel like we've co-existed just fine... in fact, she's my pet sitter when I go out of town and we have referred each other's services when something doesn't work out for ourselves. Right now we are somewhat sharing a client.. I get the morning and evening visits and she or her assistant is handling the midday walk. All seemed well...
Except she messaged me earlier asking if she should raise her rates. She wrote that people are commenting to her that her rates are too low and she took screen shots of other service providers in our area with their prices. She asked me if "we" should raise our prices. I responded that she should raise her price to whatever she feels is appropriate. She said she can't unless I raise *my* prices.
Well, here is the rub: I'm comfortable with what I charge. Apparently the going rate for dog walking is $25 a half hour.. I'm sorry, I don't think I or anyone else should be making $50 an hour walking a dog and cleaning up their poop. As it is I make $24-$26 depending on form of payment. Seriously, I think that in itself is an amazing wage!
So I don't know what is going on... I told her I was happy with my rate and I don't want to increase it. I also pointed out that I don't work all that much. I strive to just have around 6 clients a day during non-holidays. I don't really advertise. Most of my clients are purely word of mouth. I'm not even on Yelp anymore.
It felt a little invasive to me. It's really none of her business, literally. On the other hand, I do wonder what is going on.. I feel like there are less people asking around for help finding a sitter. I've also noticed there are more providers.. they are gong through Rover.com and not actually forming their own LLCs...
What's going on is pretty simple. Your competitor wants to increase her margins without the risk of losing clients to you. What she's doing is not only unethical, but probably illegal. Colluding with competitors in order to collectively raise rates would be considered price fixing. If you mention this to her, I'm sure that'll be the end of the matter.
It's unlikely that anyone would go after two pet-sitters for antitrust violations, but what your competitor is suggesting looks exactly like illegal price-fixing ("collusion in restraint of trade"). Run away, fast.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by turf3
It's unlikely that anyone would go after two pet-sitters for antitrust violations, but what your competitor is suggesting looks exactly like illegal price-fixing ("collusion in restraint of trade"). Run away, fast.
It could also be a set-up.
Both correct. Suppose you cooperate by raising your rates and she doesn't. Suddenly she starts to get your customers.
Technically this is price fixing however you guys are smalltime dog walkers not comcast, not a drug company, etc so I doubt anyone would really care. If you guys had no relationship I would say this is odd, but it seems you guys have a rapport and friendly relationship so basically she's saying hey we both can make some more money if were both on board.
It sounds like your not really interested in growing your business so your not really competition to her whether you go along with her pricing or not.
One thing I will say with your business, while 24 an hour is good, with certain businesses you need to take into account the fact you can only work with so many clients in a given day so you may need to charge a bit more just to make it worth staying in business.
I will say in the comming years you guys will face a lot more competition from sites like dogvacay, rover, etc sites that allow any joe dick or harry off the street to start your business and market themselves without really having to start a business.
It's unlikely that anyone would go after two pet-sitters for antitrust violations, but what your competitor is suggesting looks exactly like illegal price-fixing ("collusion in restraint of trade"). Run away, fast.
It could also be a set-up.
Couldn't be a setup as it would be entrapment. She was approached, in this case hypothetically by the government, to get involved in something which she otherwise would not, would it not have been for the entrapment/offer by the government.
It's like if a cop comes up to me and says hey wanna buy some weed and I'm like yeah cool and then he arrests me. I wouldn't have bought weed if he hadn't solicited me.
Technically this is price fixing however you guys are smalltime dog walkers not comcast, not a drug company, etc so I doubt anyone would really care. If you guys had no relationship I would say this is odd, but it seems you guys have a rapport and friendly relationship so basically she's saying hey we both can make some more money if were both on board.
It sounds like your not really interested in growing your business so your not really competition to her whether you go along with her pricing or not.
One thing I will say with your business, while 24 an hour is good, with certain businesses you need to take into account the fact you can only work with so many clients in a given day so you may need to charge a bit more just to make it worth staying in business.
I will say in the comming years you guys will face a lot more competition from sites like dogvacay, rover, etc sites that allow any joe dick or harry off the street to start your business and market themselves without really having to start a business.
This is it. I have seen a great decline in neighbors asking for recommendations on social media community groups over the last 15-18 months. We have several new service providers operating via Rover living in our neighborhood, we also have returning college students and entrepreneurial-minded middle and high school students year-round. I pointed this out as THE reason why she might be feeling pain... not the rates of her most similar competitor. She never responded.
I'm coming up on slow period.. kids will be out of school in a month... I need the time to see what happens next. It will be one of the following:
1) Lately I've had a few clients ask for other services outside pet care. In the past I've worked as a nanny, certified nursing assistant (adult caregiver) and I've done odd jobs in catering and light housekeeping. This summer I change my business model a bit and offer my services as a personal assistant and pet nanny. I start advertising aggressively. This could easily drive me out of pet nannying altogether though, which I'm not sure I want yet.
2) In the fall do an free, but intensive, internship at a well-regarded dog training and boarding facility. After I complete the program I am eligible to be hired as a in-house dog trainer. I can also keep my pet sitting business going offering behavioral support as needed. Experience wise this will keep me ahead of those on Rover.
3) Go on Rover and other sites. If you can't beat them, join them!... I really don't want to do this however. I would give up my perks like tax deductions and SEP ira contributions. This would be the effort of last resort to keep an income.
4) I quit, get a TESOL certificate and move to Mexico. My father-in-law is ready to retire after nearly 40 years owning and managing several private schools. My husband will own a third of the company when my FIL passes. They specialize in English and STEM. My degree is in Spanish and teaching. My husband's PhD and professional experience would serve the institution well.
I would be perfectly comfortable with #1, 2 or 4. I'm really not a fan of #3. Not at all...
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