How to Outthink Your Competition: 5 Levels of Competition by Eugene Schwartz

How to Survive in a Competitive Market: The 5 Levels of Competition by Eugene Schwartz

So, I was chatting with a friend the other day.

She’s been talking about starting a business for ages, but she’s always hesitant because, in her words, “the competition is wild.” Oh, feel ya!

It feels like everyone’s trying to sell something these days.

But you know what? I think the same thing sometimes too, and I’m a marketing specialist.

We all have those doubts, right?

But here’s the thing—competition might seem tough, but that doesn’t mean you should back down.

The key is to think differently.

As a marketer, I’m constantly learning new strategies and tactics that can help any business stand out, even in the most crowded markets.

Let me give you a simple example that shows exactly how this works. And trust me, it’s easy to understand.

I’m going to walk you through 5 levels of competition using something as simple as selling manure – lol.

I have more examples with some great ideas, but let’s start with this one.

Yeah, manure. It’s a weird example, but it’ll make the whole concept crystal clear.

Level 1: The Beginner – Claim Your Spot

Okay, imagine you’re starting out at the market, and you’re the only one selling manure.

✅You set up a little stall, and you put a sign that says:

“Fresh manure. Just what your tomatoes need.”

At this point, there’s no competition. You’ve found a gap in the market, and you’re the only one filling it.

People come by, see your product, and decide to buy because you’re offering them exactly what they need and no one else does. Simple, right?

Level 2: The Copycat – Here Comes the Competition

But wait! Soon, another seller shows up with a bucket of manure and a sign that says pretty much the same thing. Now you have some competition.

And honestly, that’s pretty normal in any market.

So what do you do? You need to stand out, right? You can’t just let someone copy your idea and take the spotlight. So, you tweak your offer.

✅Instead of just selling one bucket of manure for one price, you switch it up and put up a new sign:

“2 buckets of manure for the price of 1.”

Now you’ve got a better deal, and that might get more people to buy from you instead of the other seller.

Level 3: The Unique Twist – Add Value

Alright, now we’re moving into the third level. Grandma with her manure is still hanging around, and she’s offering the same deal as you.

So, what’s next?

How do you stand out even more?

You need to add a unique twist to your offer. This is where you get creative.

You think about what would make life easier for your customers, something they didn’t even realize they needed.

✅So, you add:

“2 buckets of manure for the price of 1 + Free delivery!”

Why delivery? Because grandma can’t carry all that manure herself, and it’ll be hard for her to compete with your convenience.

Now, you’ve got an extra advantage. You’re not just offering more product; you’re making it easier for people to get what they want.

Level 4: The Serious Competition – A Stronger Player Arrives

Here’s where things get interesting. Just when you thought you had the market to yourself, an old man shows up with a wheelbarrow full of manure.

He’s got more manure to offer, and he can carry it around more easily than you.

Now you’re dealing with some serious competition. So, what’s your next move?

You can’t just keep adding more manure or lowering your prices. You need to think beyond that.

✅You add even more value, something that nobody else has:

“2 buckets of manure for the price of 1, free delivery, and a small rake to help you spread the manure across your beds.”

Now you’re not just selling manure—you’re selling a solution.

You’re making it easier for people to use the manure they buy from you.

You’ve thought about how to solve their problems, and you’re giving them a tool that makes the whole process simpler.

Level 5: The Aggressive Marketers – Big Promises, Big Claims

At this point, things get wild. Some real aggressive marketers show up. They’ve got bold signs that promise:

“Only with our manure will your tomatoes grow in one day!”

We all know that’s a ridiculous claim. Tomatoes don’t grow in a day. But they’re trying to trick people with promises that are too good to be true.

And guess what? It works—for a while. People get excited, but soon enough, they realize the promises don’t match the results.

This is where you step in. Instead of going down the same path of exaggerating and making crazy promises, you take a different approach.

You address the frustration people feel when they realize they’ve been duped by these fake claims.

✅You say:

“Tired of digging through manure? Buy fresh tomatoes instead.”

And just like that, you’ve created a new market. Instead of selling more manure, you’re offering people a fresh, ready-to-eat alternative – tomatoes.

You’ve completely changed the game.

Eugene Schwartz’s 5 Levels of Competition

Eugene Schwartz, one of the legends of marketing, laid out a brilliant framework to help businesses navigate these exact stages.

It’s called the 5 Levels of Competition, and it’s all about how to evolve and stand out in the marketplace as competition ramps up.

The takeaway here is that you don’t just survive in a competitive market by offering a better deal or more product.

You have to be clever and find ways to add value, create unique offerings, and sometimes even change the game entirely.

The most successful businesses don’t just fight their competitors—they outthink them.

So, whether you’re just starting out or already dealing with fierce competition, remember this: you don’t have to follow the crowd.

As Eugene Schwartz shows us, survival in a competitive market often comes down to thinking differently, adding more value, and offering something your competitors aren’t and telling stories, and then using social media trends.

In the end, it’s not about having the most manure—it’s about knowing how to deliver the best solution in the most creative way.