Lift Shop
Smart50 rank: 30
Revenue: $6.02 million
Growth: 44.43%
Founders: Les Katz, 39
Based: New South Wales
Employees: 40
Industry: Construction
Website: www.liftshop.com.au
Lift Shop founder Les Katz didn’t see a niche as much as gaping wide hole when he started his business in 1996. The residential lift market in Australia was dominated by one player and Katz knew that anyone who could come in and provide an alternative would do well.
“Prices of residential lifts had fallen internationally, but clients were being ripped off quite badly by the existing incumbent in Australia, which enjoyed a monopoly position,” Katz says. “The niche was wide open to anybody half good.”
Katz and Lift Shop have turned out to be more than half good. Revenue had grown by an average of 44.43% over the last two years to hit $6.02 million in 2007-08, up from $4.2 million in 2006-07.
But it wasn’t easy. The incumbent fought hard against Lift Shop, using every trick in the book (and a few particularly dirty ones) to discredit the new player. Undeterred, Katz set up his Victorian showroom right next door to his competitor’s, investing big dollars in a flashy showroom with working demonstration lifts.
The ploy worked. Lift Shop’s credibility was instantly established and clients loved the upstart company’s willingness to stare down its bigger rival.
“We were so successful that our competitor moved out,” Katz says. “It saved our business and established us at the same time.”
His advice for start-ups facing a big, tough competitor? “Don’t be afraid, stand up to bullies; business is no different to a playground some days.”
