Need Help With Response to "Competitor"

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A woman started a plus-size children's clothing business, initially struggling to pay employees until the company became profitable. After a year, she pivoted to a direct selling model. Her business investor, a relative of someone involved with another direct selling company, asked for help recruiting consultants from that company. The individual refused due to a conflict of interest and ethical concerns, emphasizing that recruiting for another business would undermine their current position. Suggestions include firmly stating the conflict of interest, offering general recruiting tips, and recommending local marketing strategies. There is a consensus that it's unprofessional and potentially damaging to ask for such assistance, and that loyalty to one's own business is crucial for success.
finley1991
Messages
1,712
I met a woman about a year ago who was in the start-up phase of a new business. Her plan at the time was to sell her products (plus-size children's clothing) on the internet. She and I spoke because of my background in apparel. She was struggling because she didn't really want to pay her employees until her company started making money. I explained to her that it would be difficult for her to retain anyone, especially in our current economic times, if she weren't going to be paying them. (Just to note: she wasn't offering me a job, she just wanted input.)

Fast forward a year to now... her biz is up and running and she decided to do it as a direct selling business (which I think is a great way for her to market). Here is my dilemma. My bil invested in her biz and they currently have 4 consultants. He asked me to be one and I told him no because of my agreement with PC and that I won't represent another DS company. He asked me if it was everyone or just management. I said just management. He's asked me to ask my consultants if they'd like to rep her company as well because she heard through the grapevine that PC reps "are the best" and she wants good people with good experience. And on top of that, they want me to talk about her biz to other people as well and refer them to her.

Well, I'm sure in reading this, you know exactly where I am coming from and 1. if I'm going to recruit anyone, it's going to be for PC and 2. Why on earth would I suggest to anyone on my team to do another DS company in addition to what they are doing now (or lack thereof in some cases!)

So how do I respond to them? I was so stunned, all I could say was, "I'll let you know if I think of anyone" but they are planning to "follow up with me" and they want me to give them names!!!! I know I can say it's a conflict of interest and kind of said that but they didn't accept that response and kind of brushed it off and didn't take me seriously.

Any suggestions?
 
Tell thim it's a conflict of interest for you to even discuss it with your team. Maybe joke with them and ask if they are trying to sabotage your business!

Maybe they should look for a local craft fair and start advertising.
 
You can explain that not only is it a conflict of interest it is unethical for you to give out names. You can be terminated as a TPC consultant by doing this.

If he will listen you can suggest ways that we find consultants, craft fairs, booths at county fairs, holding shows...etc. You know the drill.

That takes a lot of balls to put you in this kind of situation!:eek:

Michelle
 
I agree with the above but want to add that you would be happy (if you are) to give them some recruiting tips, but it stops there.
 
Refer them to the DSA...they are the experts and can get them familiar with the ethics standards in the industry (cause they are clearly clueless).
 
Wow!! That's some cajones! She's basically telling you straight out that she wants to steal PC consultants to start her own biz. Hmmm....sounds a little like TOHE!!

I wish you much luck, tact and straightforwardness when dealing with them again. If they don't get it when you go that route you'll have to just be straight out rude (Jersey...LOL)!
 
WOW! :eek:

It SO sounds like that linens company. Tell them a little about what happened with all that last year. It's also very selfish and unprofessional of them to even ask.

I would be firm and say that you love your PC business and it would be career suicide to do what they are asking. Give them recruiting tips and wish them well but tell them that you can't be recruiting for them. I'd also point out that while some people do work for more than one company, most do poorly in both because of the split loyalty and you want your team to succeed in PC - besides, that's how YOU grow in the business.
 
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  • #8
legacypc46 said:
Refer them to the DSA...they are the experts and can get them familiar with the ethics standards in the industry (cause they are clearly clueless).

I did and they are very familiar with the DSA... but the DSA won't get them the consultants that they need.

Thanks everyone for your input!!! :)
 
Oh Colleen, I"m sorry. It sucks that bil invested b/c it just seems that you should automatically help out.

I would tell them you basically had to start from scratch (I mean Doris did everything from the beginning) when you started PC and that's it no different for them. They need to market themselves just EVERYBODY has to do when they start selling.

Good Luck!
 

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What should I say if a customer mentions a competitor's product?

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