Sales objections are part of the job. And salespeople usually come up up confronting the competitor objection when talking to new prospects. As soon as the buyer realizes the nature or function of your product, she says something along the lines of, "We already work with Competitor X," or "We already accept a supplier for that."

To overcome the competitor objection, you must:

  1. Figure out if your prospect truly has an existing vendor relationship or is only non interested
  2. Keep them engaged in the conversation long enough to prove them the value of working with yous (even if they've already purchased a competing solution)
  3. Uncover weaknesses in their current offering or contract

Accomplishing all three can be catchy -- especially when you're on the phone and losing your prospect's attention by the millisecond.

The post-obit responses will help you effectively overcome the contest objection so you tin move forward with the sale -- or accordingly respond while keeping the door open if they end upwardly choosing the competitor over your production.

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10 Ways to Reply When a Prospect Is Already Working With a Competitor

1. "That's good to hear -- [competitor] is a peachy company. In fact, we share a lot of mutual customers. Companies that apply both of our offerings frequently find that our product makes accomplishing [X goal] much easier, since it has [unique benefit #1] and [unique benefit #2]."

This response lets yous differentiate your product from the contest without slinging mud.

Plus, it opens the door for another conversation downwardly the line. Once you lot've won the prospect's trust, y'all can start talking about a switch if that'due south in the buyer'due south best interest.

two. "At this point, I'm not asking you to rip annihilation out. I'd merely like the opportunity to show you how nosotros're different and how we've provided additional value to our customers. I can nowadays some use cases of other companies like yours who piece of work with us and with Competitor X. When is a skilful time to schedule a follow-upwardly telephone call?"

According to Bryan Gonzalez, business development manager at Procore, this response will give you lot the opportunity to prove what your product does differently -- and ultimately, testify the prospect why they demand it.

3. "Got it. Can I ask what type of evaluation process you go through to be certain you're getting the best service available?"

As president of Business Past Phone Art Sobczak explains, you lot need to plant doubt in the prospect's listen before they'll ever consider changing vendors. They probably haven't thought about their conclusion to use the competition since they signed the contract -- this question volition have them wondering whether it's nevertheless the right choice.

iv. "Take they ever allow you downwards?"

Founder of Trigger Effect Selling Craig Elias recommends using this question to challenge the prospect's condition quo. If the prospect says yes, follow up with, "How did that impact your business concern?"

Finally, enquire what the vendor did (if anything) to brand up for the effect and prevent information technology from happening again.

"In one case you know more about the letdown, you can ask if they would similar to work with a more reliable vendor they can have confidence in," Elias writes.

5. "That's great. What do you like best about working with [competition]?"

Request the prospect to recollect about all the reasons they dearest the competition probably seems similar a bad idea. Only sales strategist Dan Fisher says this question actually prompts his prospects to explain what they didn't similar about their vendors. The trick? Yous have to be patient.

"No matter what they say in response, wait seven to 10 seconds," Fisher says. "The silence will become uncomfortable -- and that's when the prospect will often offer upwards a negative comment or business concern."

half dozen. "I'm glad you're [dealing with X challenge, recognize the importance of doing Y]. How'south it going?"

The first role of this answer validates the prospect, while the 2nd gets them to open up. Once they're talking well-nigh their situation, yous can figure out how happy they are with their current vendor. What's working well? What'due south not? Pay special attention to complaints that could exist solved with your product.

Alternatively, endeavour: "Oh, I'chiliad familiar with [competition] -- nosotros actually used them at my old job. Right now, I'thou not trying to convince y'all to get with us instead. I think it makes sense to explore your situation get-go and come across if [production] is fifty-fifty a good fit."

Mentioning you're a former user gives you lot instant brownie. In improver, many prospects respond well to this calm, friendly approach. Over again, the goal is to just become them talking near their state of affairs.

7. "That's great. I'm wondering, however, if you lot're still struggling to overcome [Ten challenge]. I ask considering I saw you [posted something forth those lines on LinkedIn, tweeted almost it, downloaded one of our ebooks on that, etc.] I actually have a couple suggestions for you lot related to that challenge -- would it make sense to schedule a phone call to discuss them?"

Of course, non every buyer will be so kind as to advertise displeasure with their current provider through a negative review or disquisitional social media post. But if you take the time to research earlier reaching out and analyze the prospect's online behavior, you might get wise to a non-so-perfect fit.

For instance, are they seeking help in a specific surface area that your competitor should cover? If they're looking for assist online, their current vendor conspicuously isn't solving all of their needs. Aid the prospect first, and they'll be more receptive to hearing well-nigh your production afterwards.

8. "Of course -- many of our electric current customers take used dissimilar suppliers in the by. But I'm reaching out to hash out means you could [tackle business pain, increase results, maximize this investment]. Would you be interested in scheduling another telephone call to talk well-nigh that?"

In modern sales, "Always Exist Closing" has been replaced with "E'er Exist Helping." After you lot've helped the prospect with a challenge, they'll be more receptive to hearing virtually what your company has to offer. Even better, it'due south probably been a long time since anyone from their current provider called them up solely to offer some costless advice -- so you'll offset to look more attractive than the contest.

nine. "Good to hear. I'm curious, what do you recollect makes the relationship work so well?"

Mike Schultz, president of RAIN Group, says this question is a non-threatening way to make the prospect open up. Subsequently they respond, you lot tin probe further into the relationship by asking a series of "I'm curious to know" questions.

For example: "I'm curious to know -- what's their average response time when the network goes downward?" or "I'm curious to know -- does your account managing director call just to check in?"

When the prospect answers "no" to a question, Schultz recommends digging deeper to find ways yous may be able to better on their current service.

10. "How long take you been working with that vendor?"

This question allows you to learn more about your prospect'due south human relationship with the competition without sounding too aggressive or intense.

Information technology's simple enough for him to answer, just you'll be able to intuit a expert deal of information. For instance, if he says,"We've used them since our company was founded in 1996," that tells you lot he's probably experiencing some of the pains of a legacy organization or an offering that hasn't scaled with their business.

On the other hand, if the buyer says, "The person who previously held my role set the contract two years ago," you'll know he wasn't personally involved in the decision. There may be an opportunity to present your production every bit a more sophisticated, useful, or well-designed alternative that'll assistance him drive ameliorate results than the current one.

v Means to Respond When a Prospect Chooses a Competitor

If the customer comes out and tells yous that they've chosen your competitor and signed on the dotted line, you have a limited window where you can continue the human relationship positive and keep the door open for hereafter conversations. The customer likely doesn't want a lengthy conversation nigh why they should choose you at this point, so while yous can use these responses and prompts as guidance, if the customer makes it clear they want to stop the conversation, respect their boundaries to avoid burning a span.

i."I come across. Do y'all accept a contract with them?"

If the prospect is locked into a contract and you truly believe switching is in their all-time involvement, you have a couple options. Assistance them off-ready the costs of breaking information technology early by giving them a discount or showing them the ROI of the switch. Alternatively, find out when their agreement expires, and let them know that you'll reach out again a month or ii before that date.

2. "I see. What results are you lot getting?"

There's e'er room for improvement. In one case the heir-apparent tells you the return they're currently seeing, you'll know what you lot're up confronting.

Imagine your prospect says the recruiting service she'southward using reduces average toll-per-hire by xxx%. You might respond,"Clients who have switched to our business firm from your current one typically drive down their average CPH by a further ten%. Would that have a meaning bear on on your hiring budget?"

If she says no, she's probably not the best fit anyhow.

Alternatively, you can offer your assist in improving their existing strategy -- no strings attached. Say,"That'south great. I take a few tips that have helped my customers get their CPH even lower. Would you be interested in setting up another call to hear them?"

In one case you've earned her trust and gratitude by helping her, she'll be far more receptive to your pitch.

3. "Ah, aye. We accept a few clients who used to piece of work with that vendor. Tell me, take y'all experienced whatsoever issues with [common vendor pain bespeak]?"

This is a similar tactic to number ane -- but information technology pulls at pain points a fleck more. If you choose this response, e'er use challenges you've verified with several of their former clients.

If your prospect confirms they've experienced similar issues, this is not an invitation to trash talk. Instead, focus on the solutions your product/service tin can offer instead. This keeps the tone positive and futurity-focused.

iv. "Is your contact upwards for renewal anytime before long?"

Information technology'due south best not to waste material your prospect's time or yours. By request whether their contract is up for renewal presently, you can approximate whether or not in that location'due south whatever reason for the conversation to go on.

If they've merely signed a two-yr extension, they're likely happy with the provider and unable to alter vendors for the next 24 months. This is a good case of where a single question can tell y'all all you demand to know.

5. "Okay, I appreciate your time speaking about [Product] over the past couple of weeks. Would you mind if I made a note in my calendar to attain back out to you again in [a quarter; six months; a year] to see how things have been going?"

At this indicate in the chat, the customer might have made it clear that they've signed on the dotted line, and that they aren't interested in purchasing anything from you or your company at this point. Only it can't injure to try to keep the door open.

Use this response to go along up a friendly relationship, to establish yourself as a conscientious salesperson, and to go on the lines of contact open. If the customer agrees, when you lot follow back up in the hereafter, utilize it as an opportunity to hear how they're doing in their personal and professional life, and to establish yourself as an marry, before diving back into another sales pitch. At that indicate, yous can use the first several responses on this listing to come across how they're finding working with a competitor -- and if they might be interested in switching.

There's a silver lining to hearing the "we already use Competitor X" objection: It ways that half your work is already done. After all, you don't accept to educate your prospect on their trouble -- you just need to testify them why your product is the all-time fit.

If you're looking for more objection-handling tips, cheque out this article on overcoming the dreaded, "Information technology costs too much." Or effort one of these customizable sales scripts for handling objections over the phone.

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Originally published December 21, 2022 6:29:00 PM, updated June 24 2020