What makes you tough to compete with?

It’s that thing customers value but competitors can’t seem to match. 

For Apple, it’s their integrated ecosystem of devices and services. Apple’s ecosystem binds together iPhones, iPads, Macs, Apple Watches, and services like iCloud, Apple Music, and Apple Pay into a seamless experience. Once you own one Apple product, the additional benefits and ease of using multiple devices and services from the same company make it difficult to switch to competitors 

The strength of Apple’s ecosystem lies in how all their products and services work together, enhancing convenience and functionality. This integration creates a powerful moat that other tech companies struggle to cross, contributing to Apple’s dominant market position. 

And this doesn’t just work for large tech companies. We refer to your moat as having Monopoly Control, and it can significantly increase your company’s value. A study done by The Value Builder System™ shows that companies with a monopoly are 40% more likely to receive acquisition offers, and these offers are typically 25% higher than businesses without a virtual monopoly. 

How Boondockers Welcome Built a Moat 

Let’s look at Boondockers Welcome, founded by Marianne Edwards and her daughter, Anna Maste. 

Boondockers Welcome is like Airbnb for RVers. RV enthusiasts can find hosts willing to let them park their RVs on their land for free. The RVers get a free place to stay, and the hosts enjoy meeting like-minded travelers. 

As with any two-sided market, the challenge lies in quickly growing both sides—hosts and guests. This challenge of establishing a thriving marketplace created the moat that made Boondockers Welcome tough to compete with. The success of a two-sided market depends on achieving critical mass; without enough hosts, guests won’t join, and vice versa.

Edwards and Maste had an advantage here. Edwards had spent years writing travel guides and had a dedicated list of followers who made ideal hosts. By tapping into this community, they quickly populated the site with high-quality hosts, giving Boondockers Welcome a head start that was hard for others to replicate. 

This early success allowed the Boondockers Welcome network to grow to more than 3,500 locations across the country, creating a robust marketplace that was difficult for any new entrant to challenge. 

The Sale to Harvest Host 

This well-established network caught the attention of Harvest Host, a membership service for RVers offering unique camping experiences at locations like wineries and farms. CEO Joel Holland saw the potential synergy and reached out to Maste and Edwards for a partnership. 

Initially, Maste and Edwards declined. But Holland, recognizing the strength of their moat, persisted and asked them to name their price. 

Maste and Edwards considered their ideal number and doubled it. After some negotiation, Holland agreed, and the deal closed just weeks later. 

Your moat may make your company attractive to customers, but it also makes your business more valuable. Focus on widening and hardening your moat and watch the value of your business grow. 

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