Section 1.1 Research Your Competitors Thoroughly

“Experience the thrill of competition — in showcasing the best of yourself.” — Henry Kaiser

Understanding your competitors goes beyond mere benchmarking. It’s crucial to analyze overlapping product features and identify where you excel. I invest significant time studying my competitors, as it’s a business necessity.

My objective is to steer clear of my product’s weaknesses during pitches while emphasizing our strengths. I approach my pitch by first acknowledging the competition and then highlighting what my software does best.

For instance, I might say, “Yes, Vendor A's software excels in digital whiteboarding. However, for us, that feature is a basic function, enabling us to support real-time performance tree tracking effectively.”

The goal is to ensure that the conversation is structured in a way that avoids direct pricing comparisons with competitors.

Section 1.2 Create Artificial Challenges

“To thrive in business, you must know your client, industry, competitors, and company better than anyone else in the room.” — Mark Cuban

Cuban’s insight is invaluable. Avoiding awareness of the competitive landscape can be detrimental. I recall a demonstration at a potential client’s office where everything was going smoothly until a critical request emerged: seamless integration with their existing software.

While this might sound routine, two significant obstacles were present: budget constraints and a lack of IT support for managing the integration discussions. Essentially, they were looking at a six-figure budget for a project costing seven figures.

I anticipated this challenge well in advance of the pricing conversation and proactively addressed the objection. I explained, “Based on your integration plans, we’re looking at a commercial agreement around $5 million, with a timeline of three years to complete the project.”

The reaction was palpable, but this was by design. I wanted them to understand that my software could be a viable alternative within their budget without the need for extensive integration efforts.

Section 1.3 Aligning with Prospects Against Common Challenges

By framing the complexities and costs associated with integration as the ‘enemy,’ I was able to align my prospects’ interests with mine. I reassured them, “Our software functions excellently as a standalone product and is web-based. You can start using it immediately without waiting for lengthy integration processes. Plus, our annual licensing fee is within the five-digit range.”

This strategy brought smiles back to their faces and reinforced my final principle.