Sometimes business owners are tempted to disparage their competitors in order to secure new business.
Most professionals consider this to be bad business practice. In very rare cases, a competitor will intentionally spread nasty rumors that have absolutely no truth to them.
When consumers learn the truth, it can cause serious damage to the organization spreading the rumors.
Consider this example, which may or may not be hypothetical:
There is a new retirement community opening in town and it has some competitors a bit nervous. One competitor has resorted to spreading damaging rumors that are simply not true. They tell potential clients that the new company is on the verge of bankruptcy.
A large group of professionals who are in a position to refer significant business to either of these organizations has its regularly scheduled monthly networking meeting. Professionals in the room include representatives of a trust company, a rehabilitation facility and a home health-care company, a fiduciary, an estate planning attorney, senior transition specialists and more.
As a group they discuss the rumors and the facts in the matter. When comparing the financial statement of both organizations, the new company is significantly more financially secure.
The community that is spreading the rumor has made no capital improvements to its property since it was built many years ago. They have increased the rates they charge clients every single year to provide income just to maintain the property.
On the surface, it appears that the company spreading the rumor has limited reserves and is the most likely to be insolvent and at risk of bankruptcy.
As a result, the reputation of the company who started the rumor has been damaged. The individuals at this meeting are very well connected and respected. As they share the facts with their collective connections, this negative branding will expand exponentially.
Refrain from disparaging the competition, especially if the statements are not true.
