How to Use Competitor Pricing to Build Trust

After sending over 1M cold emails, I've found “competitor rate comparisons” get instant replies from prospects worried about pricing. But what do I mean by “competitor rate comparisons”? Well, it’s when you’re simply offering to compare a prospect’s pricing against what their competitors are charging… without saying whether their rates are high or low. Here’s an example: "We’ve been comparing rates across companies like [Competitor A] and [Competitor B]. Would you be open to seeing where your pricing stands?" See, every business owner wants to know how they stack up against competition. And competitor rate comparison works because it triggers immediate curiosity without being confrontational. You're not saying their rates are wrong, you're offering valuable market intelligence. When you mention actual competitor names, you create urgency that generic messages can't match. I've used this approach across multiple industries: - Self-storage facilities worried about occupancy rates. - Pest control companies are concerned about losing jobs to cheaper competitors. - SaaS companies wonder if they're pricing themselves out of deals. And you don't even need to know if their rates are higher or lower. You're simply offering a comparison that provides value either way. And any prospect who engages with rate comparisons is already thinking about pricing strategy, which in turn makes them a highly qualified lead.

In 2022, Mr. Beast launched his chocolate bar—and sold over 1 MILLION bars in 72 hours. It wasn't because he's the most famous YouTuber in the world. But because Gordon Ramsey said ONE thing about his chocolate. Here's the sentence that generated millions: The setup was genius: Mr. Beast brought two chocolate bars to Gordon Ramsay. One was a $400 luxury chocolate bar. The other? His $2 chocolate bar. But here's where the magic happened... Gordon Ramsay tried both bars and declared: "Mr. Beast's chocolate is second to the $400 bar." Not second to a $10 bar. Not a $30 bar. Second only to a bar that costs 19,900% more. And that's when sales exploded: See, this wasn't just a taste test. It was a masterclass in price anchoring. By comparing his $2 bar to a $400 luxury bar, Mr. Beast made his chocolate seem incredibly valuable. The psychology behind this is fascinating: When customers see your product compared to a premium alternative, their perception shifts. They don't focus on the price difference. They focus on the value similarity. This creates a powerful subconscious effect: Your brain thinks: "If it's almost as good as the premium option, but costs WAY less... It must be an incredible deal!" Here's how you can use this in your sales: 1. Find competitors who are WAY more expensive than you. But here's the key: They must share 80% of your features. The bigger the price gap, the more powerful the anchor. And there's more to this strategy: 2. List your top 10 features that match the premium competitor. This creates value parity in the customer's mind. But maintains your price advantage. The script to make this work? Try this: "We're very similar to [premium competitor], but with us, you'll have money left over for [customer's desires]." This isn't manipulation—it's smart positioning. But there's one more crucial step: The key is certainty. When you know your product delivers 80% of the premium value at a fraction of the cost... That confidence becomes contagious. Your customers feel it. They trust it. And most importantly? They buy it. Stop competing on price alone. Start anchoring against premium alternatives. Because when you position correctly, price becomes secondary to value. That's how you turn a $2 chocolate bar into a million-dollar success story.

Last quarter, I told a client to RAISE their prices by 50% In the middle of a recession. While losing deals to cheaper competitors. When their win rate was already below 20%. They took the risk The results? → Win rate: Jumped from 19% to 40% → Sales cycle: Cut from 118 days to 70 → Revenue: Up 150% in just 90 days Here's what we discovered: Their low prices weren't making them more competitive They were making them less trustworthy When we analyzed their lost deals: 80% of prospects who said "too expensive" never bought from anyone The deals they won at discounted prices had 2X higher churn rates Procurement was treating them as a commodity because they positioned as one Their best customers were the ones who DIDN'T negotiate on price So we implemented what I call "Trust-Based Pricing": - We increased prices to reflect the true value delivered - We eliminated all discounting completely - We restructured compensation to reward margin, not revenue - We trained reps to walk away from price-sensitive prospects The transformation was immediate: - Prospect engagement quality: Increased 100% - Deals requiring procurement approval: Reduced by 60% - Implementation success rate: Up from 50% to 75% - Average customer lifetime: More than doubled The dangerous myth killing your sales growth: Lower prices win more business. The reality? In complex B2B sales, your price is a powerful signal about your confidence and the value you deliver. Your competitors are busy slashing prices and offering "special discounts." Meanwhile, market leaders are systematically increasing prices and watching their close rates improve. What if you raised your prices tomorrow and trained your team to confidently defend the new value proposition? P.S. If you need help with your sales, send me a message