How to Handle:
“We found a cheaper alternative”
When prospects mention a cheaper alternative, they're often testing whether you'll match the price. This objection requires careful handling - you need to differentiate on value without disparaging competitors or seeming desperate.
Why Prospects Say This
This objection typically signals one of three things: they've genuinely found a lower-cost option and are giving you a chance to compete, they're using competitive pressure as a negotiation tactic, or they don't yet understand the meaningful differences between solutions.
Best Responses
The Curious Competitor
“That's great that you're doing your homework - which solution are you comparing us to? I want to make sure you're looking at apples to apples, because there are some important differences in how solutions like ours actually deliver results.”
Why It Works
This gives you specific competitive intel and opens the door to differentiation. It also shows confidence rather than desperation.
Best For
When you don't know which competitor you're up against
The Total Cost Approach
“Price is definitely part of the equation. Have you factored in the total cost of ownership? Things like implementation time, training, ongoing support, and what happens when you need to scale? Cheaper upfront sometimes means more expensive over two years.”
Why It Works
This expands the definition of 'cost' beyond the sticker price. Many cheaper solutions have hidden costs that erode their advantage.
Best For
When competing against solutions with limited support or scalability
The Value Comparison
“I'd be surprised if you couldn't find something cheaper - there's always a lower-cost option. The question is: does the cheaper solution solve the specific problem you described earlier? Because you mentioned [specific pain point] is costing you [X]. If the cheaper option only solves half that problem, is it really cheaper?”
Why It Works
This ties back to their specific needs and reframes the decision as value-based rather than price-based.
Best For
When you've done good discovery and know their key pain points
The Risk Question
“What's your confidence level that the cheaper solution will actually deliver what you need? Because the risk of choosing the wrong tool - and having to rip it out in a year - is often more expensive than the price difference. What would it cost your team if this doesn't work out?”
Why It Works
This introduces switching costs and risk into their calculation, which often favors established or premium solutions.
Best For
When the cheaper alternative is newer or unproven
The Selective Match
“Thanks for being transparent about that. I don't want to get into a price war, but I am curious: if we could get closer on price, is ours the solution you'd prefer? Because if it is, let's talk about what a partnership might look like. If it's not, I'd rather understand why.”
Why It Works
This tests if price is the real objection and opens negotiation only if you're their preferred choice. It avoids discounting into a losing deal.
Best For
When you're willing to negotiate but need to qualify first
Do's and Don'ts
Do This
- Find out exactly which competitor you're being compared against
- Highlight differentiated value that justifies your price premium
- Discuss total cost of ownership, not just upfront price
- Share case studies from customers who switched from cheaper alternatives
- Express confidence in your value - don't act desperate or surprised
Don't Do This
- Immediately drop your price to match - it signals your price was inflated
- Badmouth the competitor - it makes you look insecure
- Assume you've lost - sometimes they're just testing you
- Ignore the objection - it will come back in negotiations
- Over-justify with feature lists - focus on outcomes instead
Follow-up Questions to Ask
“Which solution are you comparing us to?”
“What's driving the decision - is it purely price, or are there other factors?”
“Have you talked to their customers about long-term results?”
“What would you do if the cheaper option doesn't deliver?”
“Is the cheaper solution addressing all the problems you mentioned, or just some?”
“If we were the same price, which would you choose?”
Industry-Specific Variations
“Competitor X is 40% cheaper with similar features”
“Feature lists can look similar on paper. The real question is: will their solution scale with you? What's their uptime been like? How's their customer support rated? Our customers pay more because they can't afford downtime or slow support. Is that a concern for you?”
“We got a quote for half the price from another firm”
“That's a significant difference. I have to ask: are they scoping the same work? In my experience, lower quotes often mean fewer senior people, less thorough methodology, or scope gaps that become change orders. Want me to walk through exactly what our quote includes?”
“HubSpot does most of this for less”
“HubSpot is a great platform for many use cases. The difference is [specific capability] that's critical for what you're trying to accomplish. Companies typically come to us when they've outgrown the limitations of all-in-one platforms. Is that what's happening with you?”
Pro Tips
- Never discount without understanding which competitor you're up against. You might be discounting unnecessarily.
- Ask if they'd choose you at equal prices. If yes, negotiate. If no, find out why - price isn't the real issue.
- The best defense against cheaper competitors is strong discovery. If you understand their problem deeply, differentiation becomes obvious.
- Sometimes the best move is to walk away confident. Prospects often come back when the 'cheaper' solution disappoints.
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