How to respond to “Your competitor is cheaper”: 3 answers
“Your competitor is cheaper.”
“Your competitor is cheaper” is a comparison, not a rejection. Three answers to learn what each price includes, and when to let them go elsewhere.
Practice this objectionWhy buyers say it
If a buyer names a competitor, they're doing their job: comparing. It's not an attack. It's a sign they're evaluating seriously. The lower price is a fact, but the two prices rarely buy the same thing: different plans, different limits, different support, costs that show up later. If you built the product, you know exactly what's inside your price and you'll want to defend it hard. Stay calm and curious instead. What does the competitor's price include, what did they see, what do they really need. If after the comparison the competitor is genuinely the better fit, saying so is the honest move and, over time, the profitable one: the buyer will remember who didn't push.
What it often means
- They're comparing two different plans without realizing it
- Price is the only decision criterion they know how to use
- They want to see if you'll drop, and haven't actually chosen yet
Three answers that work
Could be, and I have no problem saying so. Help me understand what you saw? Which plan, how many users, what's included. Sometimes we're comparing two different things, sometimes we're not, and either way it's worth knowing.
Why it works: You don't dispute the competitor's price and you don't knock it. You ask for the details of the comparison. Often it turns out the two prices cover different things, and the buyer discovers that on their own, without feeling contradicted.
Right, they're cheaper. Here's what's in our price that often doesn't show: [support, migration, updates] with no extra charge. If those don't matter to you, the competitor is a sensible choice and I'll say so. If they do matter, the math changes.
Why it works: You admit the fact and explain the difference with concrete items, not adjectives. Explicitly allowing that the competitor might be the right choice makes the comparison believable.
Understood. Then the question isn't who's cheaper, it's what a wrong choice costs you: migrating again in a year, support that doesn't answer when your register is down. Want to look together at what happens in both cases when something breaks?
Why it works: It shifts the criterion from list price to total cost and risk. Not with threats, but with a concrete scenario the buyer has lived through or fears. And it proposes a comparison, not a conclusion.
Avoid this one
Yeah, but theirs is a toy. You'll see the problems soon enough.
Why not: Belittling the competitor makes you look insecure, not them look weak. The buyer doesn't know if it's true, but they do know you're badmouthing someone who isn't in the room. You lose credibility at exactly the moment you need it most.
Example dialogue
BuyerI saw that [another system] costs half as much. Why would I pay more?
YouFair question. Can I ask what you saw? Which plan, and for how many locations?
BuyerThe basic plan, one store.
YouThen let's compare our basic plan, not the one I showed you. We're much closer. The difference is that support and data migration are included with us. With them, if I remember right, they're billed separately.
BuyerI didn't know that.
YouWorth asking them. If after the comparison theirs still works out better for you, that's a sensible choice, and I'll tell you so honestly.
Practice this objection
A simulated buyer says it to you out loud (or in writing), you answer, and you get a score plus the model answer. Free, no account, 2 minutes.
FAQ
Should I lower my price to match the competitor?
No, if your price includes things theirs doesn't. Maybe, if you're comparing two equal things and yours is simply more expensive. In that case the problem is your pricing, not the negotiation. Matching on the spot teaches the buyer that price is always up for discussion, and it devalues what you sell.
Can I criticize the competitor if I know they have real problems?
Don't criticize them. Talk about what your product does in that situation. “When [the problem] happens, here's what we do” is a verifiable fact. “They're terrible” is a biased opinion. The buyer can discover the competitor's problems on their own. If they discover them after hearing you trash-talk, they still won't trust you.
What do I do if the competitor really is better for this buyer?
Tell them. “Based on what you've described, they're a sensible choice” loses today's sale but sets up tomorrow's. The buyer will remember who was honest. And ask to stay in touch. Needs change, and when they do, people call the one who didn't push.