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If your competition was Wal-Mart and they had too many superstores in one location would you complain to the Federal Trade Commission? Probably not, your best bet would be to provide a better Service, Price and Support channel to customers than the Wal-Mart.
The same rule applies, just because this 'Business-Person' has more 'Locations' than you does not result in him getting more sales. Provide something better and the customer will Drive the Extra Mile or in this case Click on the Next Row of Results!
Here is what I have learned, and thus far it has been working out fairly well.
First, My Golden Rule that leads to My Hopeful Golden Egg, Do Not Depend Solely Upon Search Engines!
Secondly, create a different channel for driving traffic to your site, other than Search Engines.
My Case in Point, until a couple of days ago before the launch of MSN Beta. Nothing I did put me into any sort of "Great" rankings (site is 8 months old). Thus I developed a networking with people all over the net I knew would spread the word. This has resulted in my site seeing traffic of 3000 to 4000 unique users per day and an average 60% return ratio. Now with the launch of MSN (still do not know why) I am getting 5000 to 7500 unique a day.
My Point is, I have no reliance upon the Engines! That competitor you struggle with will fizzle and your solid foundation will prove to be more concrete than what your competitor or future competitors could ever hope for!