How I Address Direct Questions on My Competitors as a 1-Man Consultant
Questions about your competitors are tricky. Be prepared ahead of time.
Many 1-Man consultants know what they do.
Few understand their products, services, and customers.
Fewer understand their products, services, customers, and competitors.
And this puts the majority of us at a disadvantage. The reason is simple. Prospects aren’t solely focusing on what you sell or can do.
They are like our mothers hunting for deals in the supermarket.
They shop around. They scout for bargains.
And, most importantly, they compare.
This is standard Consumer Behavior 101. In fact, almost all prospects I speak to bring up the dreaded question.
“How do you compare to your competitors?”
The Ultimate Strategy In-Principle — Going Head-On
I don’t mean going head-on with your competitors. There is no need to.
Instead, go on the offense. Confront the question before it turns into a sales objection. You don’t want to lose a deal because of what your competitors have done and what you did not.
The unspoken sales objection kills your deals. Initiate the objection. Turn it into objectives.
- Sell or Be Sold, Grant Cardone
Practice active listening. Avoid being presumptuous. Asking you about your competitors does not always refer to price comparison.
The prospect in front of you might be interested in the following.
- How different is your existing customer portfolio from your peer group.
- Conducting and completing a due diligence process
- Consulting service differentiation
- Product feature comparison
None of these points suggest that your products and services are relatively expensive. So, this is my suggestion.
Whenever you are confronted with questions about your competitors, do one thing. Ask this question.
“Great question. What do you want to find out?”
Take a deep breath. Avoid getting annoyed. Treat this as a conversation to further your understanding of the person in front of you.
Because this is the reality.
The more you understand your prospects, the easier it is for you to construct a deal they will like.
If It Is All About the Price…
Be on the alert. Always pay attention to the environment you are in.
Let us assume you are meeting your prospect’s senior managers in their office. You are presenting your deal pitch, and they pop the competitor pricing question out of nowhere.
“What? So Expensive? This consultant is only charging…”
You can guess how that entire string of sentences will end. Don’t let it end. As possible, hijack.
“Hang on a second. I presume you know their prices because they had a chance to pitch to you before me. But I am not done with my pitch. Be fair to me. Let me finish.”
I believe in mutual respect in business. But, if the counterparty has already interrupted me, I will return the favor.
1-Man consultants must interrupt questions on competitor pricing, especially when we are in the middle of our deal pitch and it is not yet time for Q&A. Here’s why.
You want your numbers to stick. Not your competitors.
Once your competitor’s numbers appear before yours, you default to playing defense. You start justifying why you are charging $30 more per hour, over and above that peer undercutting himself (or herself).
This is a setup. Don’t allow prospects to create a benchmark hurdle for you to cross.
Stop them as soon as you can. Entertain questions on competitor pricing only after you present your numbers.
Display Your Knowledge of the Industry and The Key Players
Our core offering as a 1-Man consultant is our knowledge. It is captured in the products and services we sell.
So, an inquiry into our competitors is our opportunity to showcase our unparalleled understanding of our industry niche. Rejoice!
Confused? Let me share how I will address the question of my competitors during conversations with a prospect.
I will focus on the following.
- Identifying the heavy hitter 1-Man consultants
- Elaborate on their client portfolio
- Share what they focus on
- Share what they do best
I will aim to conclude this fact-finding session in 5–10 minutes. My purpose is to demonstrate an understanding of my industry to the prospect.
And then, I work to distinguish myself from the pack. Take, for instance, the following.
- How this person in front of me fits into my ideal client persona
- That I am the one with professional exposure in this niche
- Run through a list of pain points before they spit any
Firstly, I give them the information they seek. Next, I justify why I am the person they need.
And bam!
I circle this deliberate distraction on market competition back to me.
Now, you may not adopt this strategy. I understand.
But you must find ways to bring your prospect’s attention back to you. Otherwise, you will lose them.
I guarantee.
Parting Keynotes
Yes, I know. You are annoyed by questions about competitors.
But that is the reality 1-Man consultants are confronted with. Prospects compare. They want to know how we perform relative to our closest competitors.
And. It does not automatically equate to a sales objection. Prospects want to know what we can do better.
And so, show them.
Show them that we understand our products, services, customers, industry, and competitors. Let them know that we know our stuff.
It builds confidence.
And your probability of getting a consulting deal increases as your confidence shores up.
As a content contributor, I write my observations from daily life and my business exposure. Because our life experience is the bedrock of our unique perspectives.
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