We all face competition. There is always someone who can do it cheaper, or faster, or better (at least in the mind of your prospect). Because of this, prospects – and even customers – are constantly on the search for a better deal. Knowing how to handle the competition objection effectively can mean the difference between winning the sale or suffering that sinking feeling of having lost the business to someone else.
There are several times you can handle the competition objection, but surprisingly most sales reps wait until it comes up at the end of their closing presentation. This is the worse time to handle it because you have already given your pricing and options and sometimes even your best deal. While you may have to handle the objection of competition during the close – and I’ll give you some scripting to do just that later in this article – the best time to handle it is in the beginning, while qualifying. Here are some ways you can do that:
Qualifying for competition:
Option #1: “_________, let’s talk a little bit about who else you’re looking at for this – who’s top of your list right now?” If you’re uncomfortable bringing up potential competition, let me assure you of two things: One, if they are shopping you, they are most likely shopping others, so don’t be surprised, and Two, trust me, it’s better to know in advance who you’re up against so you can position yourself to win the business during the close. And always ask this in an assumptive way…
Option #2: “How many companies are you getting quotes on for this?” Once again, don’t worry about introducing the concept of getting quotes, if they are going to do this (and most are), it’s better to get an idea of it now. If they tell you they are getting three quotes (doesn’t matter how many), layer this with: “And who have you liked so far?” Again, be assumptive with this.
Option #3: “_________, how does your current supplier fit into all this?” This is a nice opened ended, assumptive way to get your prospect to reveal why they might be moving away from their current vendor – or why they might still be considering using them. A great way to layer this is to ask:
Option #4: “And if you find that we can give you a better deal than you’re getting right now, what will you do next?” Obviously you want them to reveal that they’ll take it back to their current vendor to get them to lower their price, and this is what you want to know in advance. Asking this question in an opened ended way like this often gets them to tell you this. You can also ask this in a more direct way: