What other barriers to entry might you face, the advantages the incumbent has over you when you start out and how might you counter them. Economies of scale in purchasing. The incumbent will have the advantage that they can spread their fixed costs over higher volumes lowering their production costs. Because of their purchasing power they will be able to command lower prices from suppliers. To overcome this disadvantage, you need to reduce one of the other forces, the bargaining power of suppliers. As much as possible use standard parts that can be obtained from multiple sources. Take advantage of special offers, providing there are not shelf-life issues. Befriend the salesperson managing your account. They are often on bonus programs that are triggered by meeting or exceeding a quota. Your demand maybe small but it could be enough to make a difference on whether the salesperson gets her/his bonus. Now is the time to negotiate a discount. Most public companies report quarterly results and there can be a drive to capture sales before the quarter …