Prospect says "We're also looking at Competitor X."
Most sales reps either trash the competitor ("They have terrible support") or retreat defensively ("Well, let me show you our features").
Both responses weaken your position.
Great competitive positioning doesn't attack competitors or ignore them. It reframes the conversation around what differentiates you in ways that matter to this specific prospect.
Here's how to handle competitive situations in sales conversations without sounding threatened.
The Competitive Positioning Framework
When competitors come up, follow this structure:
Step 1: Acknowledge legitimately
Never dismiss competitors as inferior. This makes you seem defensive and insults the prospect's research.
Bad: "Competitor X isn't really a serious option for companies like yours."
Good: "Competitor X is a solid product. They're strong in [area where they're actually good]. Makes sense you're looking at them."
This builds credibility. You're knowledgeable and fair, not threatened.
Step 2: Clarify the comparison
Most prospects compare different tiers or configurations. Ensure apples-to-apples.
"Just to make sure we're comparing the right things—which of their plans are you looking at, and what features matter most to you?"
Often you'll discover they're comparing your mid-tier to competitor's entry tier, or they're evaluating features you both have.
Step 3: Find differentiation that matters to them
Don't rattle off every difference. Focus on the 1-2 differences that align with what they told you in discovery.
"Based on what you mentioned about [their pain point], the key difference is [your differentiator]. Let me show you what that looks like in practice."
Step 4: Offer comparative proof
Don't just claim you're better. Provide evidence.
"We actually have customers who switched from [Competitor X]. The reason they moved was [specific outcome]. Happy to connect you with [customer name] if that would be helpful."
This structure acknowledges competition while confidently positioning your strengths.
Positioning Against Specific Competitor Types
Positioning against incumbent/market leader:
Their strength: Brand recognition, established presence, extensive features
Your positioning angle: Modern approach vs. legacy platform
Script:
"[Incumbent] is the established player in this space—they've been around for [X years] and have a huge install base. Where we differentiate is we're built for [modern use case/technology] from the ground up, not retrofitted onto architecture from 2010.
For teams like yours who need [specific capability], that architectural difference matters because [specific outcome].
The question isn't whether [Incumbent] can work—it's whether their approach fits how you want to work going forward."
Positioning against cheaper competitor:
Their strength: Lower price point
Your positioning angle: Total cost of ownership vs. sticker price
Script:
"[Competitor] definitely has a lower entry price. The question we'd ask is: what's the total cost once you factor in [implementation time / additional tools needed / support costs]?
Most teams find that [Competitor's] lower price requires [specific tradeoffs]—additional dev resources, longer implementation, or limited integrations. When you factor in those costs, the gap narrows.
But it depends on your priorities. If minimizing upfront cost matters most, [Competitor] makes sense. If minimizing total cost to achieve [outcome] matters most, that's where we typically win."
Positioning against niche specialist:
Their strength: Deep expertise in specific vertical or use case
Your positioning angle: Broader platform vs. point solution
Script:
"[Specialist] is really strong at [specific thing]. If all you need is [that specific thing], they're a great choice.
Where we differ is we're solving [broader problem] end-to-end. So you get [specific thing] plus [related capabilities] in one platform.
The question for you is whether you want a specialized tool for [use case] or a platform that handles [use case] plus [adjacent use cases]. Depends on where your needs are heading."
Positioning against new/hot competitor:
Their strength: Buzz, momentum, "modern" positioning
Your positioning angle: Proven vs. unproven
Script:
"[Hot Competitor] has gotten a lot of attention recently, and they're doing interesting things. The challenge with newer players is you're taking a bet on where they'll be in 2-3 years.
We've been in this space for [X years], which means we've dealt with [specific challenges that come up at scale]. We've also proven we can support customers through [specific scenarios].
If you're willing to take early-adopter risk for their potential, they could be a fit. If you need proven reliability for [mission-critical use case], that's where our track record matters."
The Trap Questions: Getting Prospects to Self-Discover Weaknesses
Instead of telling prospects what's wrong with competitors, ask questions that lead them to discover gaps themselves.
Trap question for competitor with weak integrations:
"How important is native integration with [specific tool]? How do you plan to handle data sync between [Competitor] and [their other tools]?"
Let them realize: "Oh, we'd have to build custom integrations or use Zapier."
Trap question for competitor with complex setup:
"What's their typical implementation timeline for companies your size? Does that fit your go-live date?"
Let them discover: "They quoted 12 weeks, which is longer than we have."
Trap question for competitor with limited support:
"What level of support do they include in the tier you're looking at? What happens if you run into issues during implementation?"
Let them find out: "Support is email-only unless we upgrade."
Trap question for competitor with poor performance at scale:
"How many [records/users/transactions] do you expect to have in year two? Have they shown you performance benchmarks at that scale?"
Let them wonder: "Actually, they haven't addressed that."
These questions plant seeds of doubt without you attacking the competitor directly.
The Competitive Demo Strategy
When prospects are evaluating competitors, your demo should emphasize differentiation, not just features.
Structure competitive demos as:
1. Acknowledge what's similar
"Both [Competitor] and we can do [standard capability]. That's table stakes."
2. Show your differentiation live
"Where we differ is [specific capability]. Let me show you what that means in practice for [their use case]."
3. Tie differentiation to their priorities
"Remember you mentioned [pain point from discovery]? This is exactly how we solve that in a way [Competitor] can't because [architectural/strategic reason]."
4. Offer head-to-head proof
"We have customers who evaluated both of us side-by-side. The feature that made the difference was [specific differentiator]. Want to see that in your data?"
Don't demo your entire product. Demo your 2-3 key differentiators in the context of their specific needs.
Handling "You're More Expensive" Objections
When competitors undercut you on price, don't discount immediately.
Reframe from price to value:
"We're typically 15-20% higher than [Competitor], you're right. The reason is [specific architectural/support/capability difference]. For most teams, that translates to [specific outcome—faster implementation, lower total cost, better results].
The question I'd ask is: what's the cost of [outcome not achieved]? Most teams find that cost exceeds our price premium."
Quantify the value difference:
"[Competitor] is $500/month. We're $600/month. That $100 difference buys you [specific capabilities]. If those capabilities save your team [X hours per week], the ROI is [calculation].
But if those capabilities don't matter for how you work, then yeah, [Competitor's] lower price makes more sense."
Offer proof points:
"We have customers who switched from [Competitor] specifically because [our differentiator] saved them [specific outcome]. The price difference was less than $[X]/month, but the value difference was $[Y] annually. Happy to show you their business case."
What Not to Say About Competitors
Don't badmouth competitors:
"Their product is garbage" or "Their support is terrible" makes you look unprofessional.
Even if it's true, prospects won't trust you—they'll think you trash everyone.
Don't make claims you can't prove:
"We're 10x faster" without benchmarks or "We have way better security" without specifics.
Vague superlatives get ignored. Specific, provable claims get believed.
Don't obsess over features they have that you don't:
"They have [Feature X] but honestly nobody uses that."
This sounds defensive. If they're asking about features you lack, either show your roadmap or explain the strategic reason you built differently.
Don't position on "nice-to-haves":
"Our UI is prettier" or "Our dashboards are more customizable."
Unless UI is a core buying criterion (rare in B2B), this won't win deals.
Competitive Intelligence in Real-Time
During sales calls, gather intel on what competitors are saying.
Ask prospects:
"Can I ask what [Competitor] emphasized when you talked to them?"
This tells you:
- What they're positioning as strengths
- What objections they're raising about you
- What proof points they're using
Follow-up questions:
"What did they say about [specific feature]?" "How did they describe implementation?" "What pricing did they quote?"
Feed this intel back to product marketing to update battle cards and competitive positioning.
The Win/Loss Competitive Feedback Loop
After competitive wins and losses, debrief what happened.
When you win against competitor, ask:
"What made you choose us over [Competitor]?"
Their answer tells you which differentiators actually matter in real deals.
When you lose to competitor, ask:
"Can I ask what made [Competitor] the better fit?"
Their answer tells you which objections you didn't handle well or which capabilities you need.
Share these insights with product marketing and sales ops to refine competitive positioning.
Positioning When You Don't Know the Competitor
Sometimes prospects mention competitors you've never heard of.
Don't fake knowledge:
"I'm not familiar with [Unknown Competitor]. Can you tell me what you like about their approach?"
Ask discovery questions:
"What capabilities are they offering that matter to you?" "How did you find them?" "What concerns do you have about them?"
Pivot to your strengths:
"Based on what you're describing, it sounds like they solve [X]. What we focus on is [Y], which addresses [their pain point]. Let me show you how that works."
Your positioning isn't about knowing every competitor—it's about understanding customer needs and showing how you're differentiated for those needs.
The Real Goal
Competitive positioning in sales isn't about winning arguments. It's about helping prospects make informed decisions that favor your strengths.
Acknowledge competitors fairly. Differentiate on what matters to this prospect. Prove your claims with evidence.
And when competitors are genuinely better fits, be honest about it. Trust builds long-term relationships even when you don't win this deal.
Position confidently, not defensively. That's how you win competitive deals.