I am not sure why our competitors are so afraid of us.
We are one of the last entrants into this space. We have a simple and elegant (but powerful) product that we sell at a very affordable price. We don’t believe in locking our customers into long contracts. Our customers like us. Hey, we are from Portland, Oregon, so basically we are nice people.
We don’t pay much attention to our competitors but some of them are obsessing over us (as evidenced by their visits to our website). And apparently we are starting to strike fear in some with our rapid growth and success.
One of our competitors, who shall remain nameless but is the darling of this space, is so concerned about losing repeatedly to us that they are willing to discount all the way down to match our price in order to win business. That’s really great for us, because it validates our solution as being on par with theirs, but at 25% or less of their price. And it’s great for their customers, because when they next renew, they can score a huge discount just by mentioning the coupon code “ACT-ON”.
So then we get this weird e-mail from their VP of Marketing last week. They are one of the sponsors of a party at Dreamforce ’11, and they appear to be nervous about us even showing up at this public event!
Whoa! This is very flattering!!! And don’t worry, guys! We don’t bite, and we are (mostly) housebroken.
Let me remind you that this is a monster market, less than 10% penetrated, so why are you even worried about us? This is a rising tide, and it should lift all (non-leaking) boats.
Just for the record (and because we are nice and courteous people), we would like to thank our nameless competitor for creating such a buzz up and down Sand Hill Road and University Avenue, that our recent $10M Series C round took less than 4 weeks from first meetings to multiple competing term sheets.
Returning to the question of why anyone would be afraid of us, Clint Eastwood said it best (in High Plains Drifter):
“It’s what people know about themselves inside that makes ’em afraid.”