Let me be direct with you: when a customer says “the other guy is cheaper,” most salespeople flinch. They start justifying. They start discounting. They start apologizing for their price.
And the moment you do that, you have already lost. Not the deal, but the frame.
Here’s what I know after decades of training elite sales forces across the country: price objections are almost never about price. They are a test. Your customer is watching how you respond. They want to see if you believe in what you’re selling. Because if you don’t, why on earth should they?
Why “The Other Guy Is Cheaper” Is Actually an Opportunity
Stop treating this objection like a threat. Start treating it like a gift.
When a customer tells you a competitor is cheaper, they are still talking to you. They haven’t walked out the door. They haven’t signed with someone else. They are giving you an invitation to lead, and great salespeople lead.
The average salesperson hears “cheaper” and goes into defense mode. The elite salesperson hears “cheaper” and gets curious. There’s a massive difference between those two responses, and that difference is what separates the top 10% from everyone else.
The Mindset Shift That Changes Everything
Before we get into tactics, we need to talk about belief, because technique without conviction is just noise.
You have to believe, down to your core, that what you’re offering is worth the price. If you secretly think the competitor might have a point, your customer will feel that. They’ll hear it in the slight hesitation in your voice. They’ll see it in the way your eyes drop to the floor.
This is what I call selling from a position of strength. It means you walk into every conversation knowing that your product, your service, your company delivers something the discount option can’t touch. When you have that belief, price objections don’t rattle you. They energize you.
So before you work on your script, work on your conviction.
How to Respond: A Step-by-Step Framework
Step 1: Acknowledge Without Agreeing
The worst thing you can do is dismiss the objection or pretend you didn’t hear it. The second worst thing is to immediately capitulate.
Instead, acknowledge it:
“I appreciate you telling me that. Can I ask, what did they quote you?”
This does two things. First, it shows respect. Second, it gets you information. You need to know the actual gap before you can address it. Never assume.
Step 2: Ask What’s Driving the Decision
Most customers haven’t fully defined their own buying criteria. Your job is to help them get clear, and in doing so, shift the conversation from price to value.
Try this:
“When you’re weighing your options here, what matters most to you beyond the number? What does a successful outcome actually look like for you?”
Now you’re no longer in a price conversation. You’re in a value conversation. And value conversations are where great salespeople win.
Step 3: Introduce the Cost of Cheap
Here’s where you earn your commission. You need to help your customer understand what they’re actually buying, and what they’re risking, with the lower-priced option.
This isn’t about bashing the competition. That’s amateur hour. This is about painting a clear picture of consequences:
“The difference in our price comes down to X, Y, and Z. Customers who’ve gone with the lower option have sometimes found that [specific real-world consequence]. I just want to make sure you have the full picture so you can make the decision that’s right for you.”
Specificity wins here. Vague claims don’t move people. Real examples do.
Step 4: Reinforce Your Unique Value
You have to articulate what makes you different in a way that’s meaningful to this customer, not in a generic “we’re the best” way.
This is where your pre-call preparation pays dividends. What does this specific customer care about? Connect your differentiators directly to their priorities:
- Speed of delivery or implementation
- Long-term reliability and after-sale support
- Depth of expertise and a proven track record
- A relationship they can count on when things get hard
“You mentioned earlier that [their specific concern] is a priority for you. That’s exactly where we’re built differently from what you’re comparing us to.”
Make it personal. Make it relevant. Make it real.
Step 5: Let Them Own the Decision
Elite salespeople don’t pressure. They empower. After you’ve laid out the value clearly and honestly, put the choice back in the customer’s hands with confidence:
“Look, I want you to go with whoever is the right fit for what you need. Based on everything you’ve shared with me, I believe that’s us, and here’s why. But you know your situation better than I do. What are your thoughts?”
This kind of confidence is disarming. It communicates that you’re not desperate, you’re not discounting, and you genuinely care about their outcome. That’s a powerful place to sell from.
What Not to Do When a Customer Mentions Price
Most salespeople already know the right moves. What kills them is the wrong ones. Here’s what to avoid:
- Don’t apologize for your price. The moment you say “I know we’re more expensive, but…” you’ve signaled weakness. Own your price. It’s there for a reason.
- Don’t immediately offer a discount. Discounting as a first response trains customers to negotiate harder every single time. It destroys your margin and tells them your original price was inflated.
- Don’t bash the competition. It makes you look insecure and unprofessional. Let your value speak for itself.
- Don’t give up too soon. One price objection doesn’t mean no. It means “convince me.” Stick with it.
Stop Losing on Price. Start Winning on Value.
“The other guy is cheaper” is just a sentence. It only becomes a problem if you let it become one.
The customers who go with the cheaper option aren’t always wrong. Sometimes the lower-priced solution is genuinely sufficient. But when your product or service truly delivers more, it’s your responsibility to make sure your customer understands that. You owe them the truth, and the truth is that cheap has a cost.
Your job isn’t to win arguments. Your job is to help people make great decisions. When you approach price objections from that place, from a mindset of service, strength, and belief in what you’re delivering, the conversation changes. You change. And your results will follow.
Frequently Asked Questions
Is it ever okay to lower your price when a competitor is cheaper?
Sometimes, yes. If there is a genuine business reason and it doesn’t undermine your value positioning, a strategic adjustment can make sense. But it should never be your first move, and it should never come from a place of panic. Lowering your price reactively tells the customer that your original ask was a bluff. Lead with value first. Always.
What if the competitor really is offering the same thing for less?
Then your job is to get honest with yourself and your customer. Are they truly offering the same thing? Most of the time, they aren’t. Dig into the details: support, track record, customization, guarantees. If after that honest assessment the competitor’s offer is genuinely equivalent, that’s a business conversation worth having internally. But in most cases, “the same thing” isn’t actually the same thing.
How do you handle it when the customer has already gotten a written quote from a competitor?
A written quote actually helps you. It gives you something specific to respond to rather than a vague claim. Ask to see it if possible, or ask what’s on it. Then walk through it and explain what’s included in your offer that isn’t in theirs. A detailed comparison almost always reveals a gap in what the lower-priced option is actually delivering.
What if the customer keeps coming back to price no matter what you say?
That’s a signal that either their primary buying criteria really is budget, or they don’t yet believe the value gap is real. Go back to Step 2. Ask better questions. Dig deeper into what a bad outcome would cost them. Sometimes you need to slow down and requalify before you can move forward.
Should you ever walk away from a price-driven customer?
Yes. Not every customer is your customer. If someone’s decision is purely based on the lowest number and no amount of value articulation moves them, it may not be the right fit. Elite salespeople are selective. Chasing every deal at any price is a race to the bottom that nobody wins.
Ready to Turn Objections Into Closed Deals?
If handling price objections is holding your team back, it’s time to fix it for good.
Join Jason Forrest’s next Sales Challenge. Our challenges are built to develop the mindset, language, and skill set that elite salespeople use to win on value, not price. Whether you’re an individual producer or a sales leader building a team, this is your next step.
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