How to Handle "Your Competitor is Cheaper" in Healthcare & Medical Devices Sales
Expert framework for overcoming the "Your Competitor is Cheaper" objection in Healthcare sales. Proven 3-step method with industry-specific examples.
ScriptFly AI Team
Expert Sales Trainers
How to Handle "Your Competitor is Cheaper" in Healthcare & Medical Devices Sales
Every healthcare sales rep knows that moment of dread: you're deep in a promising conversation about your medical device or software solution, and suddenly the prospect drops the price bomb. "Your competitor is cheaper" – four words that can instantly derail a potentially game-changing sale.
Why Healthcare Prospects Say "Your Competitor is Cheaper"
In the high-stakes world of healthcare sales, price isn't just a number – it's a complex decision-making factor deeply rooted in risk management, budget constraints, and institutional procurement processes. Healthcare systems are under constant pressure to reduce costs while maintaining the highest standards of patient care and technological innovation.
The Real Reasons Behind This Objection:
- Budget constraints from increasingly tight healthcare spending
- Complex procurement processes with multiple stakeholders
- Fear of making a financially risky decision
- Perceived similarity between competing medical technologies
- Limited understanding of total cost of ownership
The Wrong Way to Respond (That Most Reps Do)
Most sales reps panic and immediately start discounting or defensively listing features. This approach screams desperation and actually undermines your credibility in a market where trust and expertise are paramount.
Don't:
- ❌ Immediately lower your price
- ❌ Get defensive about your product
- ❌ Bash the competitor directly
- ❌ Argue purely on price
- ❌ Become emotional or confrontational
The 3-Step Framework That Actually Works
Step 1: Acknowledge Without Agreeing
Validate their price concern without conceding ground. Show you understand their perspective while subtly preparing to reframe the conversation.Example Response:
"I appreciate you're looking at the most cost-effective solution for your healthcare system. Let's dig into what 'cost-effective' really means for your specific needs."
Step 2: Reframe the Conversation
Shift from price to value, especially critical in healthcare where patient outcomes and risk mitigation matter more than raw cost.Example Response:
"When we're talking about medical technology that impacts patient care, the lowest price tag can often be the most expensive decision in the long run."
Step 3: Ask a Diagnostic Question
Use strategic questions that expose the deeper considerations beyond price.Power Questions to Ask:
- "What specific outcomes are you trying to achieve with this technology?"
- "How are you currently measuring the total cost of implementing a new solution?"
- "What risks are most concerning to you in making this decision?"
Real-World Example: MedTech Solutions
When MedTech Solutions was selling advanced diagnostic imaging software to Kaiser Permanente, they encountered the classic price objection. Instead of panicking, their rep used the exact framework outlined above.
What Happened: The sales rep acknowledged the price concern, then systematically walked the procurement team through a total cost of ownership analysis. By highlighting potential efficiency gains, reduced error rates, and long-term system integration benefits, they demonstrated that their solution was actually cheaper over a three-year period.
Key Takeaway: Price is a smokescreen. Value is the real conversation.
Industry-Specific Considerations for Healthcare & Medical Devices
Healthcare sales demand a nuanced approach to pricing objections. Unlike other industries, medical device and software purchases involve complex risk assessments, compliance requirements, and potential patient safety implications.
- Compliance Requirements: Every dollar spent must align with strict regulatory standards
- Average Deal Size ($75,000): Significant investment requires comprehensive value demonstration
- Typical Objection Triggers: Budget constraints, multiple stakeholder approvals, risk aversion
5 Variations You Can Use Tomorrow
Variation 1: The Empathy Reframe "I completely understand budget constraints. Let me show you how our solution actually reduces your overall operational costs."
Variation 2: The Social Proof Angle "We've helped similar healthcare systems like yours reduce costs by 27% while improving patient outcomes. Would you be interested in seeing those specific results?"
Variation 3: The Risk Reversal "Our implementation comes with a comprehensive risk mitigation guarantee. Can your cheaper alternative offer that?"
Variation 4: The Future-Pace "Let's look beyond the initial price and discuss how this technology will transform your healthcare delivery over the next three years."
Variation 5: The Direct Challenge "I'm confident that once we break down the total value, you'll see why our solution is actually the most cost-effective choice."
Common Follow-Up Objections (And How to Handle Them)
"We still need to compare exact features" → Offer a detailed side-by-side comparison that highlights your unique value propositions.
"Our budget is fixed" → Discuss flexible payment options, phased implementation, or ROI-based pricing models.
"We need more time to decide" → Create urgency by highlighting potential missed opportunities and competitive advantages.
The Bottom Line
Handling the "cheaper competitor" objection isn't about winning an argument – it's about demonstrating unquestionable value. In healthcare, that means showing how your solution reduces risk, improves patient outcomes, and provides long-term strategic advantage.
Quick Win: Record your next sales call and analyze your current objection handling approach. Identify where you can implement these strategies.
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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.
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