How to handle competitors

Don’t fall for it.

Never bash a competitor. Never say you are better.

Instead, begin by complimenting them with a differentiation.

I use to get this all the time when working for a software consultancy. “We have come down to you and XYZ. Why should we go with you over them?”

Every founder wants to immediately start a monologue on why they are the best. Don’t do it. That is expected and makes you look weak.

Instead, give the core difference in the form of a compliment.

For example, “XYZ is the best company for web applications. If I was needing a new website, they would be my first choice. Our focus is on scientific applications. That is what we do best.”

Then leave it to the prospect to decide. Most likely they will ask you questions about the difference.

For example, “I noticed their portfolio was all web applications. So what’s so special about a scientific app that they could not do a good job?”

The thing to remember is that if they liked that company best, you would not be having this conversation. What they are doing is looking for an excuse to rule you out. Don’t give them one.

Your biggest competitor is indecision. That is why they are asking you about the competitor. They have not decided yet. Therefore, shift the focus from the competitor to the problem.

For example, “In our last call, you said that X was becoming a big issue. Has that changed?”

Once you get back to the problem, it is time to dig deeper on the pain. The big question you must get them to face is why have they not taken action yet.

There is something that you don’t know yet… something unknown that is keeping them from buying. It has nothing to do with the competitor. It has to do with being certain that you can solve their problem.

Todd Moses