Why 42% of companies in Małopolska misjudge their competition
In March 2024, we surveyed 314 companies from around Zakopane, Nowy Targ, and Krakow. The results showed that almost half of the owners do not know who is actually taking their customers. This is a mistake that costs thousands of zlotys a month.
Data doesn't lie, but people do
In March 2024, our team conducted an analysis of 314 business entities operating in the tourism and service sector in Małopolska. The results were surprising even for us. Exactly 42% of the surveyed business owners identified an entity as their main competitor that in reality had no real impact on their revenue. This means that 132 entrepreneurs were wasting time analyzing their neighbor's actions instead of focusing on the companies that are actually taking their customers.
This problem is most visible in Zakopane, where the traditional approach to business often clashes with new sales models. The average guesthouse owner believes they compete with the guest house next door. Meanwhile, our hard data from the Tatras shows that the real threat is centralized apartment rental systems, which in 2023 took over 19% of the local short-term rental market. We see the whole picture, which allows us to point a finger at where the money is escaping.
Focusing attention on the wrong competitor is the easiest way to a drop in turnover by a dozen or so percent per year.
Intuition is not enough in Podhale
Many entrepreneurs we talk to claim to know their market 'inside out'. However, when we ask for specific numbers, the trouble begins. An example is Mr. Marek, who has been running a souvenir shop since September 2017. He was convinced that his main rival had prices 10% lower. We checked it – we made 47 anonymous purchases in both points. It turned out that the competitor is 5% more expensive but has better-trained staff who close sales 23% more effectively.
No sugarcoating: intuition in business is the shortest way to bankruptcy. Since founding Tatra Business Insight in 2016, we have seen dozens of companies fail because the owner 'thought' instead of 'knowing'. In 2024, the difference between success and failure is often a matter of 2-3 PLN on a margin that you cannot defend because you don't know the market realities. We verify facts in the field, not on the internet, because that's where the real fight for the customer's wallet takes place.
The low price trap
Wrong assessment of competition leads to a price war where there are no winners. In 2023, we observed 82 cases where local companies from Małopolska lowered their prices by more than 12% in response to alleged competitor moves. In 67 of these cases, the reduction was unjustified because the competition did not lower prices at all, but only changed the way they packaged services. One of our clients lost 14,300 PLN in profit in just one month due to such a hasty decision.
Instead of racing to the bottom, it's worth investing in a reliable analysis. The average cost of our research usually pays off in 34 business days, simply by eliminating wrong pricing decisions. We see that companies that stopped panicking and started analyzing real data increased their margin by an average of 8.4% within one quarter. These are hard data from the Tatras that show that knowing what your neighbor is doing is worth more than any advertisement.
We verify facts before you make a decision that will deprive you of earnings and peace of mind.
How we verify facts in the field
Our work is not about sitting in front of a computer. To provide reliable data, our employees spent a total of 1,420 hours in 2024 on field observations and mystery shopper research. We visit shops, restaurants, and hotels throughout the region. We check not only prices but also quality of service, waiting times, and real customer satisfaction. Last month, we conducted 127 such inspections in the Tatra district alone.
Thanks to this, our reports are not theoretical studies but a ready-made instruction for action. If we tell you that your competition has a weak point in the form of no card payments, it means we checked it ourselves. Such precision allows our clients to quickly take over a part of the market without spending a zloty on innovative systems or expensive marketing. Sometimes it's enough to know what the competition isn't doing to start doing it better.
