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4 min readecommerceYour Competitor is Cheaper

How to Handle "Your Competitor is Cheaper" in E-commerce & Retail Sales

Expert framework for overcoming the "Your Competitor is Cheaper" objection in E-commerce & Retail. Proven scripts and industry-specific techniques.

ScriptFly AI Team

Expert Sales Trainers

Crushing the "You're Too Expensive" Objection in E-commerce Sales

In the cutthroat world of online retail, hearing "Your competitor is cheaper" is as common as abandoned shopping carts. But here's the truth: price is rarely the real issue. Successful sales professionals know how to transform this objection into a powerful conversion opportunity.

Why Price Objections Are Actually Good News

When a potential customer mentions price, they're telling you something critical: They're interested. They're comparing solutions and seriously considering your product. This isn't a roadblock—it's an invitation to demonstrate true value.

The Real Cost of Competing on Price Alone

CartFlow Commerce recently analyzed over 10,000 e-commerce transactions and discovered a shocking insight:

  • Businesses that compete solely on price see 37% higher customer churn
  • Customers acquired through price-based competition have 52% lower lifetime value
  • Conversion rates drop by 22% when price is the primary differentiator

The 3-Step Framework for Handling Pricing Objections

Step 1: Acknowledge the Concern

Never dismiss a price objection. Validation builds trust. Say something like:
  • "I completely understand you're looking for the best value."
  • "Price is always an important consideration."

Step 2: Reframe the Conversation

Shift from price to total value. This means highlighting:
  • Product quality
  • Long-term cost savings
  • Unique features
  • Customer support
  • Implementation efficiency

Step 3: Ask Strategic Questions

Use targeted questions to uncover deeper needs and expose potential hidden costs with competitors.

5 Powerful Response Variations

1. The Value Comparison Script

"I appreciate you comparing prices. Let me show you why our solution provides significantly more value."

Example breakdown:

  • Competitor price: $299/month
  • CartFlow Commerce: $349/month
  • Additional value:
- 24/7 dedicated support - Advanced analytics - Custom integration support - 99.9% uptime guarantee

2. The Total Cost of Ownership Approach

"Let's look beyond the initial price and examine the total investment."

Potential script: "While our competitor might seem cheaper upfront, our platform reduces:

  • Customer acquisition costs by 28%
  • Cart abandonment rates by 35%
  • Implementation time by 40%"

3. The Risk Mitigation Strategy

"The cheapest option isn't always the most cost-effective."

Highlight potential risks with lower-priced competitors:

  • Limited scalability
  • Poor customer support
  • Lack of advanced features
  • Potential integration challenges

4. The Customization Argument

"Our pricing reflects the tailored solution we provide."

Showcase how your platform offers:

  • Custom workflows
  • Industry-specific configurations
  • Personalized onboarding
  • Flexible pricing models

5. The ROI Projection Script

"Let me help you calculate the actual return on your investment."

Create a quick ROI calculator that demonstrates:

  • Projected revenue increase
  • Efficiency gains
  • Cost savings
  • Competitive advantages

Practical Implementation Strategies

Conversion Rate Optimization

  • Use dynamic pricing displays
  • Implement A/B testing for pricing pages
  • Create transparent value propositions
  • Offer clear, tiered pricing options

Inventory Management Considerations

  • Show real-time stock levels
  • Highlight unique product availability
  • Demonstrate supply chain reliability

Seasonal Sales Tactics

  • Create time-limited value propositions
  • Develop bundled offerings
  • Implement strategic discount windows

Common Mistakes to Avoid

  • Never bash competitors
  • Don't immediately offer discounts
  • Avoid becoming defensive
  • Stay confident and solution-oriented

Metrics That Matter

Track these key performance indicators:

  • Customer acquisition cost
  • Conversion rate
  • Average order value
  • Customer lifetime value

Closing the Conversation

Remember: Price is what you pay. Value is what you get.

Ready to Transform Your Sales Approach?

Want a custom objection-handling script tailored to your specific e-commerce platform? [Get a Free Sales Strategy Consultation]

Disclaimer: Individual results may vary. Pricing strategies should be customized to your specific business model and target market.

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Common Questions About This Objection

When is the best time to use this objection response?

Use this response immediately when you hear the objection. The key is to acknowledge their concern authentically before reframing it. Timing matters—respond too quickly and you seem dismissive, wait too long and you lose momentum.

What if this script doesn't work for my specific situation?

Every prospect is different. Use these scripts as frameworks, not word-for-word responses. Adapt the language to match your industry, product, and the prospect's communication style. The underlying psychology remains the same.

How do I practice these responses effectively?

Role-play with a colleague or record yourself. Focus on tone and delivery—confidence matters as much as the words. Practice until it feels natural, not scripted. The goal is to internalize the framework, not memorize lines.

Can I combine this with other objection handling techniques?

Absolutely. These responses work well with techniques like the "Feel, Felt, Found" method or the "Boomerang" technique. Layer multiple approaches for complex objections, but keep it conversational—never sound like you're running through a checklist.

How many times should I try before moving on?

If you've addressed the same objection 2-3 times using different angles and they're still not budging, it's likely not a real objection—it's a polite way of saying no. Know when to pivot or disqualify the prospect to focus on better opportunities.