I stepped out on some errands a while back. I needed to do a few repairs around the house and called a plumber to accompany me to the hardware store to confirm we bought the right materials and fittings. He has served us for many years – talk of customer loyalty, or maybe it’s a rigidity to change. I always prefer to work with the same service providers and do things the same way unless a change is very necessary. That’s just who I am.

As we went around searching for the items we needed for the repairs, we noted that most stores were already winding down as it was nearing the end of year. Some had limited stock. It was therefore a bit of a struggle finding everything at one stop. It was in these moments of walking around from one dealer to another that a conversation sparked up. Most of the dealers we visited would tell that they did not have what we were looking for. At some point I got tired and asked one of them, “do you know anyone else who might be having this item?” The response was a cold no.

As we walked away, frustration slowly creeping in as we seemed to be spending too much time trying to locate a certain item, the plumber said,

If we were in the CBD, we would have found and bought all these items in a very short time.” He went on to say  “I like shopping there because even when a merchant doesn’t what you are looking for, s/he will either advise you on who might, or even go ahead to go search for the item a nearby shop as you wait at their shop because they don’t want to lose you as a customer.  If they find it from a competitor, they will simply add a small mark up to the competitor’s selling price and quickly come sell it to you. Traders are therefore always busy selling either their own items if in stock, or those of their surrounding competitors – provided everyone makes a few coins to carry home at the end of the day.”

As we kept talking, it dawned on me that indeed, there have been a few cases where I visited the small informal traders within Nairobi CBD environs and experienced this kind of ‘hospitality’. I specifically remember an electrical outlet which I grew fond of – because the owner would always offer me a seat as he stepped out to look for items if his shop did not have them in stock. He would buy from other traders and resell; he was fine making a few coins than nothing at all – I assume. As a customer, I was happy to get what I needed without wasting too much time visiting several shops, provided the buying price was within my budget, I could live with that.

It was strange that on this side of the country, traders were not as open-minded as the ones in the CBD. They were not willing to step out and find a product for a potential buyer. To them, business meant selling what I have in my own shop, period.  They were not interest in finding out if their competitors could become their allies or associates when opportunities arose.

While it is generally healthy to have competition, I am a strong believer that competitors can also work together for everyone’s benefit – customers and business enterprises. There is a street in a certain town I once visited which had several Asian hardware shops. I would later learn that most of those shops belonged to the same proprietors –in one way or another.  They were part of a family business chain – presenting as competitors yet deep down operating as allies who had mastered the power of going separate ways while uniting to ensure business continuity.

In some jurisdictions, bringing business competitors to work together is discouraged for risks of potential collusion that might hurt the overall trade environment. I however think that sustainable business growth could look a lot better if things were flipped a bit. Competitors merging forces where necessary can do good, if you ask me. And by this I don’t mean in the sense of industry associations lobby groups – but actual allegiances that put the customers service first. For example, we are increasingly seeing aggregation especially in procurement, transport, storage and logistics, but also in the built environment business.  But back to today’s story, the experiences of small traders in Nairobi’s CBD environs who go the extra mile to find a product just so their clients are served is a good example of how competitors can act as allies. These traders know that making a few coins today through a competitor is better than shutting doors by simply saying no to a potential buyer. They will make referrals to other dealers without hesitation because they understand that there are good and hard luck days for any business. By making a referral today, a competitor will be kind enough to return the favour (although not always the case) and refer clients to a fellow merchant for items when opportunity arises.  You may argue that small businesses versus large traders face different hurdles – and therefore their competition scripts cannot be comparable. I am of the opinion that the basics of any operation will always apply, anything however big has a unity start point

Until the next post, happy reflection on what value competition adds and converting rare moments into allegiances for personal or business growth.