perceive enough value in your solution. Reaching agreement early on about the impact of resolving the problem or embracing the opportunity allows you to compare that cost objection to the value you’re providing. If this objection still comes up in the presentation, reflect the agreement on the financial impact back to your prospect and ask him if anything has changed since you last spoke.
✔ We prefer a competitor. Consider this objection a gift if it comes up early in the planning stages of your presentation. Armed with a competitive analysis (see the next section), you can emphasize those attributes that differentiate you from your competitor throughout your presentation. Focusing on competitive strengths without necessarily mentioning your competition early on can diffuse this objection as can opening designed to address the objection.
Some salespeople have a tendency to skip over this step. After all, you run up against the same cast of characters all the time. However, two important reasons not to underestimate your competition are
✔ Familiarity breeds assumptions. With so many new things to contend with each day, people often overlook that which they already know. That tendency to undervalue a competitor, “Oh, they’re not a big threat,” or operate off of old data “They’ve never been competitive in this niche” can lead to unpleasant surprises. Shifts in strategy, new product launches, or marketing campaigns can impact your prospect’s perspective. Check your competitor’s website and industry reports to get the most current messaging. Social media is a valuable resource for finding out what customers are saying about working with your competition. Approach each competitor with a fresh eye to maintain a competitive edge.
✔ Bias blinds you. Being critical of your competition is easy, but if you look at your competitors objectively, you can notice that they probably do some things well. In fact, they may even be able to solve your prospect’s problem – maybe not as quickly, smoothly, or thoroughly as you – but they can probably do it. It’s to your advantage to be as objective as possible about your competition in order to outsell them.
You probably already have a clear idea of who your direct competition is for this opportunity, but depending upon the scope of the problem, some additional players may have entered the field. Make sure that you prepare for each of them.
✔ Direct competition: Direct competitors are the companies you probably compete with on a regular basis. You typically share an industry, product, service, market, and/or niche.
✔ Potential competition: Although not direct competitors, these companies may overlap with you in a specific area, or they may be a less obvious choice. For example, if you’re selling insurance, you’ll certainly compete with other insurance carriers, but in certain cases you may also find yourself up against firms that outsource HR services as well.
✔ Invisible competition: Many salespeople often overlook this category and major player. Your invisible competition is all the other priorities that are competing for the time, attention, and budget of your prospect. For example, your prospect may be considering a big capital investment in equipment, opening a new office, or sponsoring a community project. Getting a clear picture of who or what is competing for the same piece of the pie gives you greater insight into the decision-making process and helps you position your product or service.
✔ The status quo: This may be your toughest competitor. Regardless of the business challenge that you’re addressing, the status quo is almost always a major contender for two primary reasons:
● Many products that require a sizable investment, such as infrastructure, construction projects, or enterprise software, often lead to additional investments in other areas like training, staffing, or upgrading other systems. Change at this level can be overwhelming and lead to procrastination.
● The status quo is the path of least resistance. People get comfortable with the tried and true, no matter how flawed. In this case, the pain of not changing has to be greater than the pain of changing. Always treat the status quo as a favored competitor to avoid being blindsided.
Knowing how you stack up against your competition is important as you start to develop your presentation. Getting an accurate handle on your competitors’ strengths and weaknesses helps you position your product or service accordingly and highlight key differentiators. Here are some areas in which you’ll want to look:
✔ Product: What are their primary capabilities and how do you rank against each? Are they a specialist in your prospect’s niche or industry or do they lack experience in this area? How does that compare to you?
✔ Service: How do their service models, prices, and response times compare to yours?
✔ Pricing: How do you compare in terms of base price, add-ons, upgrades, and so forth?
✔ Delivery: Are they fast, reliable, and on time? Are their prices for these services clearly disclosed and competitive?
✔ Resale: How does their product hold its value?
✔ Support: What type of support staff do they have when problems arise? How does it compare to your support?
✔ Marketing messages or themes: What marketing promises are they making or expectations are they reinforcing in the market?
✔ Unique selling proposition (USP): What is their USP and how is it different from yours?
✔ Company outlook: Are they poised for growth or taking a loss? Consider mergers, acquisitions, and hiring activity.
✔ Customer experience: What are their customers saying about them in social media? Are they able to deliver on all promises?
Putting together a competitive analysis chart like the one in Figure 2-3 can help you quickly see where your strengths and weaknesses are in relation to your competition and help you focus your efforts.
Illustration by John Wiley & Sons, Inc.
Figure 2-3: An example of a competitive analysis chart.
Identify one or two competitors and write their name at the top of a column. Begin by ranking your product or service from 1–5 against the competitive factors on the left. Then, do the same for your competition. When you’ve completed the chart, note which company has the advantage in each area. Play up those areas where you have a distinct competitive advantage in your presentation and find ways to shore up or have a ready response for those areas where you aren’t as strong.
Creating a Presentation Plan Checklist
As you prepare for your presentation, there are a lot of moving parts to keep track of, including logistics, research, audience members, message development, visual aids, rehearsal, technology, and so forth. Dropping the ball in one area can have major repercussions in others.
