I have a different take on this. We manufacture South African model trains: see
www.scalecraft.co.za I developed a a superior product using various techniques. I know exactly what the opposition is doing, the techniques they use and the issues they face. They know the same about my operation (If they don't then it is their own stupidity not to find out). All the products are on the website and of course images of all the full size rolling stock is readily available. My opposition and I trade on a South African site similar to Ebay - we vie for the same customers all the time. None of us trade via the dealers because their mark-ups push the prices up to high. Sometimes we manufacture the same products and the customer chooses which product he buys based purely on price, quality and reputation. Given the innovation, quality, effort, product range, knowledge and customer base, the opposition can't touch me. I stay on top of what the opposition does, they don't get to lift a finger without me knowing about it. If they do something new or different I buy the product and take it apart to see what they did, how they did it and if its a good idea I use it. (All companies do - new cars have led lights, abs, traction control, they all look alike, why, copy copy copy) My opposition come into my workshop and I supply them with parts that I manufacture or import. Why, goodwill and insight into their operation. I know who is doing what because they order parts from me and it is amazing what one can find out over a beer and a bit of "bait" - give him advice, a part or a customer and he feels obliged to do something for you in return. in terms of techniques, its all very much the same, we use resin casting, injection moulding, brass etching, laser cutting, etc, there are no secrets. We each have our own way of doing things but it is much the same. Now, my customers prefer my products because they are simply the best on the market, yes, the opposition can copy them, and do, but if the customer is unwilling to pay my price then he can go away. My motto is this "A quality product for a quality customer" I will not trade with the rats and the mice - you know: the guy that complains that he can't afford the hobby and then wants to haggle - my view is that if he can't afford the hobby then he should take up another hobby.
To me the whole thing is like a second hand car dealership. There are 20 dealerships next to one another selling the same products, how does a dealer get a customer to buy when the guy goes from the one dealer to the next...a good dealer like Joe Girard does over and over and over again.
Business is largely about relationsips between people. Yes, products are important but a customer is far more forgiving if the relationship is good.
it is simply a given that products are copied sooner or later, the Chinese have it down to a fine art, the trick is to create a unique product, climb into the market and sell sell sell. As soon as the product becomes a commodity and everybody and his dog markets the product you should already be onto the next innovative product and you ride the wave all over again...Well at least that is what I believe and yes I know that it isn't easy if you are a little business struggling to make ends meet, but the fact of the matter is that if second hand car dealers can make it big, then so can we. (I am also the little guy fighting to stay alive...)