If you don't subscribe to John's Twitter feed, it was pretty funny today. I'm reposting here:
Uh oh. Reacting to SPL's lemonade stand, next door competition arrives (5 nine year old girls). However: SPL's is pirate themed, so I think we'll be okay.
Not a ton of foot traffic though. Wonder if we need a social media strategy.
SPL was all "what about SEM?" and I was like "what is this, LemonadeStand 2008?"
Hmm. Competition is buying all SPL's inventory, trying to deplete his stores. But they're paying retail, so it's working pretty well for him about 4 hours ago
"if we buy all his, he's going to make all the money." (one of the nine year old girls)
It appears that a price war may be about to erupt. Inevitable, really, with zero cost of goods and no network effect.
we haven't really worked on the merchandising yet. But here's a pic of the 2 stands.
Uh oh. Allegations by the competition of dirt in SPL's lemonade. Getting ugly.
And...he's sold out. Gone back to factory for more. Competition, having bought all his lemonade, now overstocked. Price drop imminent.
Fat v lean startup: SPL: 1 person, good product, profitable. Neighbors: 5 staff, lots of marketing (music, signs), broad product line - soda
And gimmicky business model, trying to buy out competitors.
Up next for Pirate Lemonade: Limeade! (supplier issues force product innovation)
SPL to customer: "uh, your dog looks thirsty, too." sadly, no sale.
Lemonade stand finished for today. Social media strategy (tweets) attracted at least 1 customer from afar, but hard to track.