The War Room
Question
Post

How do you go up against competitors who are always lowballing pricing?

To provide more context here, the product/solution I sell is more geared towards the enterprise tech space, while I'm only able to go after SMB accounts. That's where I am running into difficult pricing conversations, and some prospects have even said that our product is too robust for where they are at as an organization, thus going with the competition that always lowballs pricing.

6
salesnerd
WR Officer
+16
Head of Growth
If it's always the same competitor lowballing, begin to expect it. You can handle the objection before it's even brought up. 

"I know you mentioned you're looking at Company XYZ as well. They're known for lowering their prices because they lack features A B and C and it appears they feel the only way they can win is by being a bargain instead of being the best tool out there."
FireSale
Opinionated
+1
Account Executive
This is super helpful, thanks!
BetterEveryDay
Good Citizen
Sales Management Trainee
Sales is all about communicating value. I am confident that your product is priced at its market rate, or your company wouldn’t be in business. I would suggest emphasizing on what your company can do that no other company can. Many decision makers will be happy to spend the extra money if they understand the value that you are adding for the extra cost. 

If your customer isn’t willing to pay the extra fee for your company, then the value of your product over the competition wasn’t clearly communicated. 
CadenceCombat
Tycoon
+13
Account Executive
Value > Price
Sales4what
Opinionated
+4
Co-Founder & VP Sales @ PLURiTy
Communicate the value of your service over there’s. In the freight industry you see this a lot, because markups can be anything- does someone want roomy lower for subpar service, or would they invest a little bit extra to have the right service 
funcoupons
WR Officer
+11
up in Fiji, under paddy
Address it head on and explain why going with the lowball is not a good idea. I deal with this every damn day at my job...we are very rarely ever the lowest quote and I proudly tell prospects this from the beginning. There will always be some people who don't care about value or fail to recognize it and go with the low quote, but for every one of them there is someone who cares about value.
SalesGal
Politicker
+6
Account Manager / FSR
I also started addressing the pricing thing head on and get good results from it. Most people will still listen to my pitch. 
SalesGal
Politicker
+6
Account Manager / FSR
Great question ! I face the same issue. My competitors lowball prices to get sales. I have the better product and service but customers don’t always appreciate the value in that when there’s money to be saved. I’ll be following the thread replies. :) 
11
when do you tell your clients the price
Question
10
31
"Your Price us too high" How to deal with this sort of objections?
Question
65
13
Product Pricing - What are your best answers for customers who would start with 90% discounted price while negotiating?
Question
21