Customers say “Your competitor is cheaper” for a reason. Here is what usually sits behind it, how to respond and what to avoid.
The customer has a lower number in hand and wants to know why yours is higher. It may be a genuine comparison, a negotiating move, or a way to test whether you will cave. Before you react, find out whether the two offers really cover the same thing.
Typical in: Software and SaaS, Insurance and finance, Telecom and energy, Real estate, Professional services, Retail and e-commerce
Pick the framework that fits the customer. The wording is an example direction, not a script: say it in your own words.
Ask what sits behind the objection, so you answer the real concern.
“That is useful to know. Can you tell me what their offer includes, so I can check we are comparing the same things? Things like support, set-up, contract length and what is extra.”
Move from the objection to the result the customer said they want.
“If price were the only thing that mattered you would have signed already. What was it about our conversation that kept you talking to us?” Then build on what they say, not on what you wish they had said.
Check whether this is the only obstacle, so you do not answer one worry after another.
“If we could close the gap on the parts that matter to you, is there anything else standing between us and a decision?” This tells you whether price is the real obstacle or the first of several.
After your response, ask:
What would the cheaper offer not give you that you were hoping to get from us?
Avoid: They’re cheaper because they’re worse.
Attacking a rival you know little about sounds defensive and may insult the customer’s own judgement, which makes the comparison personal.
Reading is not the same as saying it. Talk to an AI customer who raises this kind of objection and see in the report which sentence helped.
Practise this objectionThe customer has a lower number in hand and wants to know why yours is higher. It may be a genuine comparison, a negotiating move, or a way to test whether you will cave. Before you react, find out whether the two offers really cover the same thing.
Clarify before you answer: “That is useful to know. Can you tell me what their offer includes, so I can check we are comparing the same things? Things like support, set-up, contract length and what is extra.” Reframe around the outcome: “If price were the only thing that mattered you would have signed already. What was it about our conversation that kept you talking to us?” Then build on what they say, not on what you wish they had said. Isolate the objection: “If we could close the gap on the parts that matter to you, is there anything else standing between us and a decision?” This tells you whether price is the real obstacle or the first of several.
What would the cheaper offer not give you that you were hoping to get from us?
Avoid “They’re cheaper because they’re worse.” Attacking a rival you know little about sounds defensive and may insult the customer’s own judgement, which makes the comparison personal.
Educational conversation training. It is not legal or financial advice and it promises no results. Always follow your company’s rules, the terms of the product and a customer’s clear no.