Can we use our competitor’s pricing as an anchor point in our sales or marketing (for instance, showing that for a similar price as theirs, we offer more features or higher limits)? How do we do this without directly bashing or violating any norms?

Below is a concise answer based on Price to Scale’s guidance:

Yes, you can use a competitor’s pricing as an anchor point—but it must be done carefully and factually. Here are some key points from our book, Price to Scale, and how to apply this strategy without resorting to negative comparisons:

• Direct comparison vs. value demonstration:
Rather than “bashing” the competitor, use their pricing as a benchmark to show that for a similar investment, your solution delivers additional features, superior performance, or better overall outcomes. Emphasize the extra value rather than simply critiquing their offer.

• Focus on your strength:
As discussed in Price to Scale, whenever prospects ask, “Why are you priced similarly when others offer similar promises?” it is crucial to have a clear, fact-based explanation of your superior product logic. For example, highlight your more robust client roster, success stories, or additional features that are uniquely beneficial for your segment of the market.

• Stay transparent and positive:
Avoid any remarks that could be perceived as disparaging. Instead, use factual, side-by-side comparisons that speak to the benefits your customers experience. This can be achieved by creating comparison tables or case studies that demonstrate the unique benefits you bring to the table without making direct negative comments about the competitor.

• Tailor your messaging for different segments:
As Price to Scale suggests, segment your customer base and adjust your messaging accordingly. This means for some prospects, you might stress that for nearly the same price, your plan includes upgrades or additional support features that cater to their specific needs. This stylistic framing keeps the conversation positive and customer-focused.

In summary, using a competitor’s pricing as an anchor is acceptable when approached as a value demonstration rather than a negative critique. Focus on showcasing the enhanced benefits you deliver, maintain a positive tone, and back up your claims with clear, factual comparisons. This respectful, transparent strategy aligns with the guidelines in our pricing strategy book, Price to Scale.