Competitive Warfare
Doyle Slayton | Oct 28, 2009 | Comments 26
Reader Q & A:
Are you speaking poorly about your competition? Is your competition bashing you?
I’ve known people who believe in creating doubt in the prospect’s mind by pointing out a competitor’s weaknesses. These people also believe in “fighting fire with fire.” For example, if a competitor sends a client or prospect a negative email about you, then you must immediately respond to that email to defend yourself, and in turn, point out the competitor’s weaknesses.
On the other end of the spectrum, I’ve known people who believe the exact opposite. They take a “I won’t speak on their behalf,” approach and choose not say anything negative about the competition. In the case of a negative email, these people believe in “taking the high road” with a more passive response. They think striking back makes both parties look bad.
What do you think… Is talking badly about the competition a good idea or a bad idea?
Does it help you win deals or lose deals?
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Filed Under: Blog • Fun-n-Stuff • Leadership • Reader Questions • Sales • SalesTaxi
I never heard of anyone making a sale by bashing their competition, but I bash competitor’s techniques all the time and have definitely made sales as a result.
A large (razzmatazz) marketing agency undercut two of my proposals in one week and won the accounts by doing a bigger and better dog and pony show, and giving the “you get what you pay for speech” while charging twice my fees.
If I had a throat-cutter handy…
When I suspected it was about to happen a third time with a much bigger account, I took great pains to be my professorial self and teach the prospecft all about the tricks of the trade in dog and pony show presentations.
I showed the business owner examples of how I could give him a smoke and mirrors act and probably get him to buy the impression (instead of the substance).
I gave him a list of questions to ask anyone else he might interview for the project so he could measure apples and apples.
I gave him some insight about how to spot a phony wheeler-dealer city-slicker who would promise but not deliver.
As tempted as I was, I never mentioned any names.
He called me a week later with the assignment, offering the same fee the razzmatazz marketing agency quoted (which was twice what I was prepared to ask for).
Needless to say, I did the work, gave him a fat discount, and got his referral to two other friends that I also landed. One friend was the first client I’d lost to razzmatazz who said they’d turned out to be non-performers. “Duh!” I wanted to say, but held my tongue.
Anyway, RAZZMATAZZ IS DEAD If you agree, or aren’t sure you may want to check out my recent blog post:
http://halalpiar.com/2009/10/razzmatazz-is-dead/
Happy Bashing! (But bash HOW your competitor uses manipulative or questionable practices, NOT WHO THE COMPETITOR IS.)
Naming names serves no purpose, and could come back to haunt you. Professional salespeople EDUCATE as they listen and solve problems!
Hal I completely agree with you giving our prospects a “list of questions to ask anyone else he might interview for the project” is what I do as well.
Talking about making sure the client gets what they need vs. naming names & bad mouthing anyone – I always assume I have competition and use this strategy.
Great question Doyle.
I believe any time devoted to bad mouthing your competition takes the focus away from your product/solution/service and potentially damages your credibility with the client/prospect. I think most folks are turned off by negativity. Just look at politics and the visceral reaction people have to negative ad campaigns.
If, during your conversation, the client/prospect brings up the competition, use the opportunity to inquire about who/what they considering, what they know about your competitors, and what they like or dislike about them. It’s a terrific opportunity to gain valuable insight.
One question could be, “Based upon the options you are considering, how do we stack up?” The follow-on is why. This can help you to discover holes in your proposed solution for instance and further qualify the opportunity.
Integrity is key in everything we do. If you are looking to form a strong long-lasting relationship trust is the cornerstone. If you do speak of your competitors it should be purely fact based and not conjecture.
I don’t necessarily agree with your assertion that not speaking negatively about one’s competition is a passive approach. Rather, I believe it can proactive and turn a potential negative into a positive for you and your client/prospect.
Cheers,
Brian
Hi there,
We work with clients on improving sales results and one of the key things we have been working on in the current economy is developing a market share strategy for clients, which means winning business at the expense of the competition. In good times, most businesses pursue a growth strategy (because it is easier!). This means the market grows and you win your share, if you have a decent product and price. But this also means you will only win the ‘easier’ deals.
In a flat economy, a company can only grow if it takes away market share from the competition. Therefore, you must both know your competition and be able to talk about them. A bit like the previous comments, it is not appropriate to rubbish the competition (the customer you are talking to may well have decided to use them in the past, so you are insulting their judgement).
What you need to do is:
Understand your and your competitions strengths and weaknesses
Identify the customers needs in these areas
Make intelligent and factual statements about what you both offer
Differentiate in areas where you are strong
Give the customer the tools to make an objective comparison
Always ask how you compare to them
As Hal says in his response, help the customer by saying things like, ‘even if you don’t buy from us, you should ask these questions of any supplier you plan to use.’ Make sure the questions are ones that highlight the competitons’ vulnerable areas.
Finally, a lot is spoken about ‘consultative selling’. This means knowing enough about the customer, their business, your competition and commerce in general to be able to genuinely consult. So we must be prepared to talk about other suppliers. We don’t bash, but we do differentiate.
Excellent point about differentiation. My firm is in the executive search business and the guidance that I given to my recruiters is,
“We are similar to XYZ company however here’s how we are different and therefore better.”
Doyle,
I think the clue to the answer is the word “bashing” in your question.
It’s never appropriate to “bash” a competitor. But it is important to educate prospects and customers about your competitor, and your company.
I’ve seen many in the B2C arena be reluctant to address issues with competitors head-on, and I think that’s a bad thing.
I agree with Peter that we can’t be afraid to differentiate ourselves.
Hi Doyle,
I love this topic. There is a way to speak poorly about your competition. I blogged about it here:
http://thesalesblog.com/2009/07/how-to-badmouth-your-competitors-and-still-remain-professional/
This allows you to speak badly about them, without actually speaking badly about them in particular.
Anthony
Bad idea,
As I discuss in my post: “Our Competition Sucks Selling”, one of the signs of a Market Loser versus a Market Leader http://tinyurl.com/yguktae
If talking bad about your competition is all you have…you have nothing.
Mark Allen Roberts
http://www.outbsolutions.com
Make your competitors sound good, this gives weight to the value of using a service.
Then make sure you look better than them, if the buyer thinks the competitor is good and that you are better, you will look great.
If you make the competitor look bad, then you are only better than bad, this is not a great scenario.
I recently had an encounter with a Certified Financial Planner who illustrated your point very well.
He gave a presentation in front of a netowrking group I was attending. Afterward, while getting personally introduced, he asked if I had need for his services. I let him know that I was well taken care of by a loved one at XYZ (well known financial firm).
He proceeded to bash the firm that has provided my loved one with outstanding opportunities and career growth for over 18 years.
Had he listened to the fact that this was my loved one, he could have immediately understood that he had no chance of having my personal business. Also, he could have learned that my loved one is not a financial planner and I do not pass referrals to him for financial planning business.
I could have been a referral partner for this person if only he had not turned me off. As a result of his bashing the competition, I threw away his card and will never refer business to him.
Shelly:
Terrific example!
Being a successful CFA is about developing rapport and trust. The guy you met doesn’t get that — he must think it’s about technical skills.
Cheers,
Art
You’re going to have to define ‘bashing’.
In the technology space, we’re required to know – and compare – ‘our’ products to ‘theirs’. Part of that process is pointing out strengths (hopefully; of our product) and weaknesses (hopefully; of theirs).
The key is integrity. Many a time, I’ve had to point out something ‘my’ product does which the competition does not – and I’ve been valued as an adviser for that.
In the long run, it’s honesty.
‘Bashing’ takes care of itself.
I pity the fool who does not buy from me!
Never, Never, ever bash the competition.
In one deal that lead to over 10-years of outsourcing the competition had been there and let’s just say tainted the waters due to performance leading the client to not even want to outsource. We were able to succeed by not talking about what was done or not done but by how we could help bring success to the client expectations with the right solution.
Honesty and integrity wins every time.
Just remember, by bashing the competition, you are telling the buyer that they made a stupid decision.
Great discussion!
The views I often voice when coaching B2C salespeople:
1. Talk about what you have, can & will do, not what they haven’t, can’t or won’t
2. Differentiate using positive language. “Why we’re different…”, “We’re unique in this industry as we….” or “How we set ourselves apart is by….”
3. Using the name of the competitor is as bad as swearing. There is no reason to do it, and it’s about as negative as you can get!
On those sales where more industry/product knowledge needs to be demonstrated (and only where necessary) Then sit with the prospect and show your feature (say pricing structure), and then work through the competitors in order to demonstrate why that initial discount doesn’t work out in the long run (for example). The above 3 rules still appply during this though!
I am dealing with this right this very instant so this is a very timely topic for me. I’m most interested in the responses.
To date my company has taken the high road with our competition and have heard often the competition is not…they are bashing in a feeble attempt to gain business. What I’ve learned…it always gets back. I am hearing what the competition is saying because my contacts don’t appreciate it and are passing the information along to me. I, in turn, would suspect that if we were bad mouthing it would not make a good impression and it would get back allowing the other company to take advantage.
Always the high road in my opinion!
I NEVER bash the competition. In fact, when I am speaking wih a prospect, I ask them NOT to tell me who they are currently using for their background checks, because it does not matter to me. Yes, COULD I say something bad about XYZ Company, sure.. will I, no! I will, however, say “If I were you, I would MAKE SURE that they are confirming the record at the state or county level before reporting the information to you”.. or whatever is appropriate for our topic of conversation, but I would never say “There is no way they are/aren’t doing this/that”.
Have a great day!
Jennifer Kerrigan
Background Investigation Bureau
http://www.bib.com
Doyle:
I read your question several times and I keeping coming to the same conclusion. Why did you ask the question?
Has anyone made a case “for” bashing the competition? Sure, some salespeople do it all the time, usually to their own peril, as in Shelly’s story.
And it shouldn’t be about taking the low road or the high road. Why not take the right road?
If someone raises a competitor’s name, there’s no reason to say anything more than, “I see.” or “Yes, I’ve heard of them.” (If it’s a small competitor, you might get away with a cheeky response such as, “Gee, I’ve never heard of them.”) Generally, any comparison, GOOD or BAD, puts you in a weak defensive position.
Years ago, a salesman had a terrific response when I mentioned his competitor. He said, “If you’re talking with them and with me, one of us has done a poor job of prospecting.” Then he just smiled at me until I asked the obvious question, “What do you mean?” He pointed out how his product was best suited for my needs. Good tactics on his part! He changed the base. It wasn’t his product compared to Brand X. It was my needs compared to his product. Brand X never came up again in the conversation.
The lesson I learned was to compare the client’s objectives to your product or service. No need to compare your product to the competition. In most cases, when you compare yourself to the other guy, you lose control.
If I sell Mercedes Benz and you tell me you mention BMW, it’s foolish of me to bash BMW, or suggest MB is better. I’d say, “They (I wouldn’t say BMW) make a fine car. Let me ask you this, what’s really important to you about a new car?” I’d focus on the things you want (after asking lots of questions and listening), and then show you how MB best delivers those things based on your wants and needs.
There’s rarely a good reason to talk good or bad about your competition. Talk about how your product can best help the client.
Cheers,
Art
I don’t bash my competition, which is legion. I also don’t think of sales in military terms that accounts are “won” like territory to be taken from the enemy.
If asked how my product compares to a competitor, I talk about my COMPANY and how it is different from the vast majority of my competitors & why that delivers a better product, service and value.
If pressed for intel about a competitive product, I may give the top reason why we get calls from their customers looking to make a change.
And if someone really insists on my opinion (and some customers do) – then I tell them my only yardstick is “would I send them a resume if I were looking for work” and give them my short list (which has only two products on it) along with reasons why all the rest aren’t on the list.
Pointing out differences in your product from your competition helps your customer make an informed decision. Saying their product is junk because of how they make it is another story.
Your customer will know what to do if you have shown them why your product is superior.
Always take the high road! Never speak of anyone in a negative light.
Great ones from Jennifer and Art.
The subject seems so relevant in these troubled times, when competition can get ugly due to the desperation to survive.
I believe that it is not bad to talk about competition, as long as you are the first one to start the debate. The basic premise is that most of our Customer’s are intelligent (just like us), except for a few exceptions who are gullible. So it is quite possible for some of our prospects to fall for it when competition goes about bashing us. We have no choice but to respond to each of these situations, but also manage to steer the discussion towards the customer’s need and why we are better.
One thing that certainly worked for me is slightly similar to the approach of Hal. Except that in this case, i managed to speak to pre-empt to the customer on being contacted and also on what he was bound to hear. So when Razzmataz went in for his usual bashing script, he ended up making a fool of himself and still continues to do so.
All in all, fantastic debate and thanks to all the contributors for some fabulous ideas on objection handling.
Doyle,
We practice, and recommend representing the competition with credibility and conviction.
It is the only way to truly render your competitor salesperson useless. If I’ve already credibly represented the strengths and weaknesses of all the viable options available to my prospect, the other rep has nothing to contribute.
I have, and still do sell my competitors’ stuff–for them. If it’s the right thing for my customer, I sell it to them, because I want the customer. I’m selfish that way; I want to control the deal. In my segment of the market, I sell every deal that I get the opportunity to pitch; whether or not it’s my stuff that wins the sale.
As a result, I get more invitations to present each time, and I close more deals (for me) than before I started fearlessly and legitimately selling competitor’s products for them.
It sounds strange, but it has made me more money and increased my pipeline beyond my wildest expectations.
[...] Are you speaking poorly about your competition? Is your competition bashing you? [...]
I think the best thing to say about your competition is to say something complimentary or nothing at all. To say something complimentary (if it’s sincere of course) is an indicator that you’re not afraid of your competition. It’s ok to say something about them if there are significant differences that will help the prospect make the right decision, but not for the purpose of putting them down. It’s just plain unprofessional. Don’t be memorable for the wrong reasons.