Winning on value

How to Stop Competing on Price

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The short answer

You compete on price when the buyer can't see why you're worth more, so they treat you and the cheaper option as the same thing and pick the lower number. The fix isn't priced in dollars at all. Give the buyer a clear reason you're different and price stops being the only thing they can compare. Find the one thing about how you work that no one else can honestly say, sell the experience and the outcome instead of the deliverable, and give your way of doing it a name so it becomes something the cheaper option can't copy. When a buyer can see why you're different, price stops being the whole conversation.

If you're competing on price, you've already lost the real argument

When a buyer's only question is "what's your number," they're telling you something you don't want to hear. The buyer isn't really haggling over your price. They just can't see why you'd cost more than the cheaper option, so the number becomes the only thing left to compare.

And it's a brutal game to be stuck in. There's always someone hungrier, newer, or dumber about their own margins who'll go lower. Win on price and you've signed up to keep winning on price, quarter after quarter, until the work isn't worth doing. The whole thing is a race, and the prize for coming first is a business that can't breathe.

The way out isn't a slicker discount or a shinier proposal. It's getting a buyer to see, fast, why you're not the same thing as the guy quoting less. This is one of the quiet walls that keeps a good operator from scaling a service business: you can't grow margin while you're apologizing for your price.

You talk about the work. They're buying the result.

Here's where most operators trip. You're genuinely great at the work, so when you sell, you talk about the work. The spec. The process. The materials, the steps, the hours. All the stuff you're proud of.

The buyer doesn't care about any of that, at least not the way you do. They care about what it does for them. The outcome. The headache that goes away. The feeling of not having to think about this anymore. When you describe the deliverable and your competitor describes the deliverable, you both sound identical, and identical things get sorted by price.

What you sell vs. what they're buying
What you talk about
  • The deliverable and the spec
  • Your process and your steps
  • The materials and the hours
  • How hard the work is to do
  • "We do good work and we care"
What they're actually paying for
  • The outcome and the result
  • The headache that finally goes away
  • Certainty that it's handled
  • The way only you do it
  • A specific promise built for them
Sell the left column and you sound like everyone else, so the buyer sorts on price. Sell the right column and price stops being the whole conversation.

Ben has a reframe he runs with founders on this, and it flips the whole frame. You stop describing what you make and start naming the experience you actually sell. His line for a wealth firm was blunt: you're not a wealth management company, you're an experience company that happens to specialize in wealth. Same work. Completely different thing to buy. The deliverable was never the point. The experience around it is what none of your competitors are really selling.

Find the one thing no one else can honestly say

Ben has a drill for this. He'll ask a founder, over and over until it lands: what's the one thing that makes you different that no one else in your market can say? Not a nicer version of what everyone says. The thing that's true for you and would be a lie coming from anyone else.

Most owners can't answer it fast. They reach for "quality" or "service" or "we care more," which is exactly what the other twelve companies say on their homepages. That hesitation is the diagnosis. If you can't name your difference in a sentence, your buyer definitely can't, so they fall back on the number.

When you do find it, it changes what happens in the market. Sunny Kaila, who built a global tech company out of a business that started with him behind the wheel of a cab, put it this way on his episode: "Your unique strength and your unique capability has the power to convert your competitors into clients, into collaborators." The thing only you do isn't just a sales line. Done right, the people who used to undercut you start needing you.

Your edge is how you do it, not what you do

The trap in the "what makes us different" question is that owners hunt for a different what. A new service, a new product, some feature the other guys don't have. That's rarely where it lives, because a feature gets copied by Friday.

Chad Jenkins said it cleanest on his episode: "The way you do what you do is your secret sauce. That's not why people do business with you because of some title. It's the way you do what you do." The what is a commodity. The how is yours, and it's the part a cheaper shop can't hand a customer even if they match your price.

So take the way you do it and make it real. Name it. The founders Ben coaches turn their quiet, unconscious way of working into a named method, a standard with a name on it, and suddenly it's a thing the buyer can point to, remember, and repeat to their spouse instead of one more vague promise. One founder who ran an industrial cleaning company had a cleaning process he thought was just "how we do it." Ben stopped him mid-sentence: we've got to name this. Named, it stopped being a line item and became the reason to pick him.

You can't out-shout a noisy market, and you can't out-cheap it either

The instinct when deals get competitive is to get louder or get cheaper. Both make it worse. Nikki DiFilippo, a B2B marketing strategist, said on her episode: "There's just too much noise and the noise is just getting started, and the pull is going to have to come from the customer." You don't win a noisy market by adding to the noise. You win it by being specific enough that the right buyer pulls toward you on their own.

A clear, narrow promise does that. "We do X, for this exact kind of customer, in this specific way, and here's what you get" pulls harder than "we do everything, for everyone, cheap." The specific promise feels like it was built for one person. The cheap-and-broad pitch feels like a coin flip, and coin flips go to price.

What this is really costing you

Competing on price isn't only thinner deals this quarter. It's a quiet tax on what the whole business is worth. A company that wins on being the cheapest has no moat, trains its customers to leave for a lower bid, and lives one competitor away from a bad year. That's the kind of business that's hard to sell and easy to replace, which drags down its value long before you ever try to exit it.

Charge for the experience and the difference, and the opposite compounds. Better margins, stickier customers, a business that isn't hostage to the next lowball quote. If you know you're worth more but keep getting talked down to the lowest number, the work is usually excavation, digging out the difference you've buried under "we just do good work." That's the exact thing Ben does with founder-operators: find the one thing only you can say, then build the business around charging for it.

How to stop competing on price
  1. 1
    Name the one thing no one else can sayNot 'quality' or 'we care.' The thing that's true for you and would be a lie from anyone else. If you can't say it fast, neither can your buyer.
  2. 2
    Sell the experience, not the deliverableStop describing the work. Describe the outcome and the feeling of it being handled. You're not selling the what, you're selling what it's like to work with you.
  3. 3
    Give your way of doing it a nameTurn your unconscious 'how we do it' into a named method. Named, it stops being a line item and becomes a thing the cheaper shop can't hand a customer.
  4. 4
    Make one narrow, specific promiseBuilt for one exact kind of buyer. Specific pulls harder than cheap-and-broad, because it feels made for them instead of like a coin flip.
Give the buyer a reason to pick you that isn't the number.

None of this means gouging or pretending you're something you're not. It means telling the truth about why you're better and letting the price reflect it. The cheapest option is always available. Your job is to make sure it's not the only thing a buyer can see.

What to actually do

Competing on price is a difference problem

When the buyer's only question is your number, it means they can't see a difference between you and the cheaper option. That's a positioning problem showing up disguised as a pricing one.

You talk about the work; they buy the result

Describe the deliverable and you sound identical to every competitor, and identical things get sorted by price. Sell the outcome and the experience instead of the spec.

The experience is the thing you're really selling

Ben's reframe: you're not a [your industry] company, you're an experience company that specializes in it. The deliverable was never the point.

Name the one thing no one else can say

Ben's drill: what's the one difference that's true for you and would be a lie from anyone else? If you can't say it fast, your buyer can't either, so they fall back on price.

Your edge is the how, not the what

A feature gets copied by Friday. The way you do what you do is the part a cheaper shop can't hand a customer even if they match your price. Name it and make it real.

Winning on price lowers what the business is worth

A company that wins on being cheapest has no moat and trains customers to leave for a lower bid. Charging for the difference is what makes it worth more and easier to sell.

From the podcast

Your unique strength and your unique capability has the power to convert your competitors into clients, into collaborators.
Sunny Kaila, founder and CEO of IT By Design · Watch the episode
The way you do what you do is your secret sauce. That's not why people do business with you because of some title. It's the way you do what you do.
Chad Jenkins, founder of Seed Spark and author of Just Add a Zero · Watch the episode
There's just too much noise and the noise is just getting started, and the pull is going to have to come from the customer.
Nikki DiFilippo, B2B marketing strategist at Via Vera Group · Watch the episode

Common questions

Why do I keep getting beaten on price?
Almost always because the buyer can't see a real difference between you and the cheaper option. When two offers look the same, the only thing left to decide on is the number. It's rarely that you're overpriced. More often your difference just isn't visible, so the buyer defaults to the one thing they can compare, which is cost.
How do I stop competing on price without losing deals?
Give the buyer a reason to choose you that isn't the number. Name the one thing about how you work that no one else can honestly claim, sell the outcome and experience instead of the deliverable, and make a specific promise built for their exact situation. You lose the buyers who only ever wanted the cheapest, and you win the ones who wanted the difference and can now see it.
What does it mean to sell value instead of price?
It means talking about what the work does for the buyer, not the work itself. They aren't buying your process or your spec, they're buying the outcome, the certainty, and the feeling of it being handled. Ben's reframe is to stop describing the deliverable and start naming the experience you actually deliver around it, because that experience is the part no competitor is really selling.
How do I figure out what makes my business different?
Answer Ben's drill honestly: what's the one thing that's true for you and would be a lie coming from anyone else in your market? Skip 'quality' and 'we care,' since everyone says those. Look at how you do the work, not what you deliver, because your method is the part that can't be copied. If you can't name it in a sentence, that hesitation is the real problem to solve.
Does competing on price hurt what my business is worth?
Yes. A business that wins by being the cheapest has no moat, trains its customers to leave for a lower bid, and stays one aggressive competitor away from a bad year. That makes it hard to sell and easy to replace, which lowers its value long before you try to exit. Charging for a real difference builds margin, loyalty, and a business a buyer actually wants.

Tired of being talked down to the lowest number?

If you know you're worth more but keep losing to the cheaper quote, the difference is usually there, just buried under 'we do good work.' This is the work Ben does with founder-operators: excavate the one thing only you can say, name it, and build the business around charging for it. Let's find your difference.

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