“Hooray! We can have the business if we match their existing supplier’s price.”
Why would you ever have to match your prospect’s existing supplier’s price? Why would your prospect be compelled to change if they didn’t believe some better result was possible? And if there isn’t something compelling your dream client to change why bother to change at all?
If there is some compelling reason to change, then the accompanying improvement is worth paying more to obtain. Even if it’s only a little bit more. If there’s more value being created, more value should be captured.
Matching your competitor’s price means that you’re playing the commodity game. It means you believe you’re interchangeable. It’s a strong indication that you believe that you are creating no greater value. Your effectively confirming what you’ve heard your prospects say: “You’re all the same.”
By matching your competitor’s price, you’re admitting, “Look, we can just as poor a job as these guys do for just as little money. We’re just the same.”
It’s okay to want your prospect’s business. But if you can’t command a greater price for creating greater value, you aren’t really selling.