A prospect says a competitor offers the same thing for less. How do you respond?
What the interviewer wants to hear
- Stay calm and do not criticise the competitor
- Ask questions to understand what they are comparing
- Bring focus back to their priorities and decision criteria
- Show differentiated value and total cost, with proof
- Avoid a quick discount
Model answer
First I thank them for being open and never speak badly about the competitor, because that damages trust. Then I ask questions: which parts are they comparing, and what matters most to them in this decision. Often the offers are not really the same; there may be differences in implementation, support, integrations or contract terms. I bring the conversation back to the problems they told me about and show how we solve those, using customer stories and numbers from similar companies. I also help them look at total cost of ownership, not just licence price. If after that we are still more expensive, I make sure the value is clear and let them decide. I do not jump to a discount just to match.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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