How to make it as a local Service Business?

[PubertyMaxxer]

How can a local business create a local monopoly in his region and create barrier to entries?

 

[Deleted member 7725]

Wrong website kiddo.

 

[AscensionMan98]

How can a local business create a local monopoly in his region and create barrier to entries?

You could gain a big customer base by getting in touch with someone that works in the other place, and give them a certain amount of money in exchange for leaking the customer data base. Then you would undercut the other place a lot and operate in very thin profit margins or even slight losses initially to get them to move to you.

Once they move to you after a few months you make the rate normal.

 

[Kingcel32]

What do you mean by service business?

 

[Kingcel32]

Like specifics

 

[Lorsss]

How can a local business create a local monopoly in his region and create barrier to entries?

burn down your cometitors' business
In my region I have seen bars literally put on fire.
Maybe it was the mafia?

 

[Deleted member 19896]

Certified IQ tester business?

 

[PubertyMaxxer]

What do you mean by service business?

Dental Office or hair salon or anything that revolves around the work done directly ON the customer

 

[BoneDensity]

Then you would undercut the other place a lot and operate in very thin profit margins or even slight losses initially to get them to move to you.

Undercutting everyone else by a large margin seems like the easiest and most popular way of doing it. You'd have to do it until the other businesses are forced to close which could be a long ass time.

 

[Kingcel32]

Dental Office or hair salon or anything that revolves around the work done directly ON the customer

Would be tough to start up, usually anything that has to be done to a person has licenses/degrees that are most of the time difficult to get, you’d also have to obviously compete with other firms, depending on your location those existing businesses would have been there for a while, which would give a bias in favor towards them by the customers.

To be honest it all depends on the type of service you are providing. You can definitely be very competitive by lowering prices and advertising that, if you provide quality service cheaper than other firms than you will gain a large customer base. Developing a monopoly however will be incredibly difficult and to be honest probably not worth your time.

 

[AscensionMan98]

burn down your cometitors' business
In my region I have seen bars literally put on fire.
Maybe it was the mafia?

That can work. Even with insurance only half would get covered. I know in the honey industry its common for bee keepers to wipe out their competition's bee colony .
Things like arson the question is are you going to do that to every competitor. It'll be pretty sus when your place is the only one not their, and not to mention with their long period of operation and insurance pay out who is to say they won't just rebuild somewhere else.

Could work in a smaller town though. Not much competition, but also less demand.

 

[thereallegend]

if you provide quality service cheaper than other firms

way easier said than done

Developing a monopoly however will be incredibly difficult and to be honest probably not worth your time.

the correct conclusion

 

[Kingcel32]

way easier said than done


the correct conclusion

True, especially if it has to do with dealing with any sort of operation on other people. The training and licensing required alone will tough to acquire, not even talking about quality service.