Latest / Closing the Deal with Fexingo: Sales, Negotiation, and Revenue Conversations for Operators / The One Question That Reveals If a Buyer Is Lying About Competitors
Transcript
- Lucas: There's a moment in almost every competitive deal where the buyer says something like, 'Your competitor is offering us a much better price.' And most reps, they either panic and discount, or they get defensive and start trashing the competitor. Both are mistakes. Luna: Right, because either way you're reacting emotionally instead of staying in control of the conversation. Lucas: Exactly. So today I want to talk about one specific question that cuts through that. It's a question I first heard from a procurement consultant named Tim Cummins — he runs a nonprofit called the International Association for Contract and Commercial Management. And he told me that in his entire career, he's never once seen a buyer give a false answer to this question. Luna: That's a bold claim. What's the question? Lucas: It's deceptively simple. When a buyer says 'Competitor X is cheaper,' you ask: 'What specifically is structured differently in their proposal that leads to that price?' Luna: Oh, I like that. Because it's not accusatory — you're not calling them a liar. You're just asking for details. Lucas: Right. And here's why it works: price is never just a number. It's a reflection of scope, terms, risk allocation, payment schedule, service levels. If a competitor is truly half the price, something in the structure is different. Maybe they're excluding implementation. Maybe they have a longer payment term. Maybe they're offering a stripped-down version. Luna: And if the buyer is bluffing — if the competitor doesn't actually have that price — then the question forces them to fabricate details on the spot. Most people are terrible at that. Lucas: Exactly. So let me give you a real example. I was working with a SaaS company that sells project management software to mid-market firms. Their average deal size was about fifty thousand dollars a year. They had a prospect who was down to two finalists: my client and a much larger, well-known competitor. Luna: Classic two-horse race. Lucas: Classic. So the buyer calls the rep and says, 'Look, we love your product, but Competitor A is offering us a thirty percent discount off their list price. Can you match that?' The rep, to his credit, didn't flinch. He said, 'I'd love to understand what's driving that difference. What specifically is structured differently in their proposal?' Luna: And what did the buyer say? Lucas: The buyer paused for about five seconds — which feels like an eternity on the phone — and then said, 'You know, I'm not sure. Let me check with my team.' The rep followed up two days later, and the buyer admitted that the competitor's price was actually for a three-year commitment with a much smaller user count. My client's proposal was for a one-year term with full user licensing. Luna: So the competitor wasn't really cheaper. They were just offering less. Lucas: Exactly. And the rep didn't have to discount at all. He just reframed the comparison. That deal closed at full price, a few weeks later. Luna: Okay, but what if the buyer does give a detailed answer? What if they say, 'Well, their implementation is half the cost, and their annual maintenance fee is lower'? Lucas: Then you have real information. Now you can evaluate whether those differences are real or based on assumptions. But here's the key: most buyers, when they're bluffing, can't give specifics. They'll either deflect — 'I don't have the details handy' — or they'll give a vague answer. And that's a signal. Not proof, but a signal. Luna: So you're saying the question serves two purposes: it flushes out bluffers, and it gives you data when the competitor actually is cheaper. Lucas: Exactly. And there's a third benefit: it positions you as a consultative partner, not a pushy salesperson. You're showing that you care about understanding the full picture, not just winning a price war. Luna: That reminds me of something a buyer once told me off the record. He said, 'I always test reps by mentioning a competitor's price. The ones who immediately drop their price lose my respect. The ones who ask questions earn it.' Lucas: That's a perfect illustration. Now, the question isn't just for price objections. You can adapt it for any competitive claim. If a buyer says 'Their product is faster,' you ask 'What specifically is different about their architecture?' If they say 'Their support team is more responsive,' you ask 'What metrics are you using to compare response times?' Luna: So the pattern is: when a buyer makes a claim about a competitor, ask for the structure behind it. Lucas: Exactly. And you want to avoid sounding like a cross-examiner. Your tone should be genuinely curious. You can even preface it with something like, 'That's interesting — I want to make sure I understand the full picture so we can be fair in our comparison.' Luna: Let's talk about the psychology here. Why do buyers bluff in the first place? Lucas: Usually for leverage. They want a better deal, and they think mentioning a competitor will create urgency or fear. Sometimes it's a test — they want to see if you'll cave. But occasionally, it's because they genuinely believe the competitor is cheaper, but they haven't done a proper apples to apples comparison. Luna: So the question helps both scenarios. If they're bluffing, you expose it. If they're mistaken, you educate them. Lucas: Right. And if the competitor truly is cheaper on an apples to apples basis, then you have a real problem. But at least you know it's real, and you can decide how to respond — whether that's adjusting your offer, or walking away. Luna: One thing I've noticed is that a lot of reps are afraid to ask this question because they think it'll make them seem defensive or confrontational. Lucas: That's a real concern. But the framing matters. If you say, 'Are you sure?' or 'That doesn't sound right,' you sound defensive. If you say, 'Help me understand the structure,' you sound collaborative. I've seen reps practice this in roleplays and it makes a huge difference. Luna: You know, we talk a lot on this show about specific tactics that move deals forward. And I think this question is one of the highest-leverage tools because it works in almost any competitive situation. Lucas: It really does. And it's free. It doesn't cost anything to ask a better question. Luna: Speaking of free — these episodes are ad-free and listener-supported. A couple of dollars a month genuinely keeps the lights on. If you've gotten value from the show, you can support us at buy me a coffee dot com slash fexingo. It makes a real difference, especially for a niche show like this. Lucas: Yeah, appreciate that reminder. And we don't have a big marketing budget — it's really just listeners like you who find it useful. Okay, back to the topic. Let's talk about a common pitfall when using this question. Luna: What's that? Lucas: Reps sometimes ask the question and then go silent, waiting for an answer. That can create pressure. Instead, after you ask, you might add a softener like, 'Even a general sense would help.' That keeps the conversation flowing. Luna: Good nuance. So the question is powerful, but delivery matters. Lucas: Exactly. Another nuance: if the buyer gives a specific answer, don't immediately challenge it. Thank them and say, 'That's helpful. Let me take a look and get back to you.' Then you have time to verify. Luna: So you're not forced to respond on the spot. Lucas: Right. And sometimes, when you come back with your analysis, you find the competitor's offer has hidden costs or different terms. You can then present your case calmly. Luna: I want to try a quick roleplay. I'll be the buyer. I say: 'We love your product, but Competitor B is offering us twenty percent less. Can you match it?' Lucas: I'd say: 'Thanks for sharing that. To make sure we're comparing fairly, can you tell me what specifically is structured differently in their proposal that leads to that price?' Luna: Hmm. I'm not sure. I think their implementation fee is lower, and they're offering a discount for a multi-year commitment. Lucas: Okay, that's useful. So their lower price is partly because they're asking for a longer commitment. In our proposal, we structured it as a one-year term to give you flexibility. Would you like us to also quote a multi-year option to see if we can get closer? Luna: Yeah, that would be helpful. See how you didn't discount? You just offered a different structure. Lucas: Exactly. And now the conversation is about value and terms, not just price. That's a much better place to be. Luna: So the question is really a gateway to a more productive negotiation. Lucas: It is. And I'd argue it's also a test of whether the buyer is acting in good faith. If they refuse to answer or get evasive, that's a red flag. Luna: You might want to walk away from that deal. Lucas: Possibly. But at least you know early, before you invest more time. Luna: Let's talk about implementation. How do you train a team to use this question consistently? Lucas: I recommend roleplaying it in team meetings. Have one person play a buyer who bluffs, and another practice the question. You want reps to internalize it so it becomes automatic. Also, put it on a cheat sheet for deal reviews. Luna: And what about follow-up? If the buyer says they'll get back to you with details, but they don't? Lucas: That's another signal. If they were bluffing, they might ghost. So you follow up once, maybe twice, and if they still don't provide details, you can gently say, 'Without understanding the structure, it's hard for us to evaluate whether we can match that price. Can we set up a call to review both proposals side by side?' Luna: That's non-confrontational but keeps the ball in their court. Lucas: Exactly. And sometimes, the buyer realizes they can't substantiate the claim, and they drop it. Luna: I think the biggest takeaway is that most competitive objections are actually opportunities to gather intelligence, not threats to your deal. Lucas: Well said. And the question is your tool to turn a threat into information. So next time a buyer says 'Your competitor is cheaper,' don't panic. Just ask: 'What specifically is structured differently?' Luna: And then listen. You might learn something that saves your deal. Lucas: Or that tells you it's time to walk. Either way, you're in control. Luna: That's all for this episode. We'll be back on Thursday with another angle on closing deals. Lucas: Until then, keep asking better questions.