Talk to me about competitor intelligence/secret shopping...

AprilH81

So here is the scoop.  I have a bachelor's degree in business, experience in corporate meeting/event planning and a natural talent for organization and paying attention for details.  I have been laid off from my job for two weeks and there aren't a lot of jobs open in my area and I have filed for unemployment.

My brother in law owns a company and has told me he had a "job" for me and that he would pay me $750 for what he anticipated to be about 20 hours of work.  He wanted me to interview some of his main competitors and report back on the sales experience, pros/cons, how I felt after making the appointment, after the sales pitch, what I thought of the reps/materials/etc, basic competitor intelligence stuff.

I jumped at the opportunity because it actually sounded fun and I would learn more about his product (which we are in the market for anyway) and help out his business all at the same time.  

All this week I have been working on this for him and he has been really impressed with the information I am providing him and he is very grateful for my assistance and has volunteered to be a reference for me if I wanted to do this as a job.  He says I have a natural talent and that there is a market out there for competitor intelligence and secret shopping.

I'm intrigued by the idea of starting my own freelance business in this area.  The hourly rate that I'm being paid based on this job is similar to what I was making before and I would theoretically be working fewer hours.  If I can get 15-20 hours of work a week most of the time at this rate I would be ecstatic.  I could be on DH's insurance and have the flexibility to work when I wanted.

What kind of things do I need to think about?  What would be the best way to market myself?  What kind of drawbacks would there be?

We are in the fortunate situation that we can meet all of our needs (and a few small wants) on DH's income.  When I am working my money goes to vacation funds, fun money, larger entertainment budget (sports tickets, date nights, etc) and extra savings for various goals.  We could "afford" a salary cut but I don't want it to be too drastic.

chibiyui

Hmm. I honestly really don't have a good idea.

I'm a gullible person. So I have a hard time spotting Secret Shoppers, but I've read plenty of stories and have coworkers who can spot them a mile away, obviously if your fished out, it's a no go, which is my main concern, how to network and build contacts without outing yourself? 

AprilH81

chibiyui said:

Hmm. I honestly really don't have a good idea.

I'm a gullible person. So I have a hard time spotting Secret Shoppers, but I've read plenty of stories and have coworkers who can spot them a mile away, obviously if your fished out, it's a no go, which is my main concern, how to network and build contacts without outing yourself? 

If I'm doing competitor intelligence I would be working for the business owner and the sales reps of competitors would theoretically have no reason to suspect I am anything other than a customer.  I'm not sure I would be able to have too many contracts in one industry because then the businesses would possibly be alert to my name but again, it may not be an issue. 

Example:  Company A works in appliance repair and they hire me to gather competitor intelligence on B, C and D who they view as their top competitors.  Maybe down the road Company D hires me but they want me to investigate E, F, and G because they don't view A as a strong threat.  Does that make sense?  Unless I needed to have some sort of non-compete clause and disclose if I had gathered intelligence on a company previously...

Secret Shopping would be a little more difficult, mainly because I could theoretically be in the same store multiple times.

Again, the idea intrigues me, but I'm not sure it makes sense as a primary source of income.  

I could network via my BIL.  He is part of several business organizations and he said he would happily recommend my services.

Blergbot

I used to be a secret shopper. Basically I would get a free meal at a restaurant to review them internally. Or I would shop at a store, have to return the item and then get a small stipend for my report. The time they expected you to put into the reports was not worth the small amount. I really only did it so that I could eat out at nice restaurants when I was totally broke. But if you have contacts and think you could start up a business, then more power to you. I think it's all about who you know. Just know that the companies already out there are getting people to work for them for next to nothing.

AprilH81

Blergbot said:

I used to be a secret shopper. Basically I would get a free meal at a restaurant to review them internally. Or I would shop at a store, have to return the item and then get a small stipend for my report. The time they expected you to put into the reports was not worth the small amount. I really only did it so that I could eat out at nice restaurants when I was totally broke. But if you have contacts and think you could start up a business, then more power to you. I think it's all about who you know. Just know that the companies already out there are getting people to work for them for next to nothing.

The competitor intelligence for non store based businesses (think contractors, door and window installation, plumbers, etc) would be more lucrative than a true secret shopper.  Business owners here industry gossip (Company A over charges, Company B has horrible installers, etc.) but it is hard to get specifics because the customer has the information on the quotes and marketing materials.

[Deleted User]

I don't have much to add on the side of the actual work, but I can say that working as a freelancer/independent contractor can be a pain in the butt sometimes. I did it for about a year and the biggest problem for me was all the tax junk. 

Where I live you have to file for a special tax account number and of course have to keep track of all of your expenses. It might have been a pain for me just because I've never owned or run a business before, but I had to go to an accountant to file my taxes because of all the lovely tax laws in my area. Normally I just do the cheap-o online tax forms, but with all that paperwork I definitely would have screwed it up. I think if I had continued doing it for longer it would have gotten easier, but for that short period of time it stunk. Not to mention knowing you have to save a percent of your income to pay back during tax season. Seeing that fly out of my bank account is depressing, even though I knew it was going to happen hahaha.

vikinganna87

On the one hand I think it's a fun idea and makes sense because it's something you're naturally good at and seem to enjoy.  You have a great entrepreneurial spirit and there's definitely a need for this type of work.

On the other hand, at least for me - there are some ethical considerations.  Not as much with the in-person secret shopping as with remote competitive intelligence gathering  Most businesses do this to some extent; pose as prospective customers and ask questions to gauge pricing, differentiators, technical competence.  Oftentimes it's a salesperson getting intel on the competition - and if he/she is experienced - should be able to sense if something is fishy.  That's not really a problem; you'll still get plenty of information - but the more deceptive you are, the better you do. [That's just the way I see it]. Is this something you would enjoy in the long run?  If so, then definitely go for it.

Also, 2 weeks without working may seem like a long time, but it really isn't. You sound like a go-getter who would be an asset to a lot of companies out there.  On top of the competitive intelligence gathering work you mention, you could use this gap to explore your passions, expand your network and think of other jobs and career paths that may interest you.  For example, what about something like sales?  Freelancing as an event planner?  There are a lot of opportunities with flexible/part-time hours.