Understand Your Buyer > How To Convert > Competitor Discount
What is it?
A competitor discount can help attract buyers who may have already spent money on another solution by helping to “refund” some or all of the money they have spent.
Why does it work?
It works because one of the main issues people have when making a purchase is whether or not they will waste their time or their money.
If you’ve already spent money on a solution that’s not working and you’re being offered a discount on a solution that will work – it helps you to feel less like you’ve wasted your money and it’s an attractive offer.
How can you use it?
The first thing to consider is how much money your buyers may have wasted elsewhere. Then you need to consider how much of that you can offer in the form of a discount to attract those buyers to switch to you.
An example is the software called “Clean My Mac” which offers a 40% discount if you can prove you’ve bought from a competitor but it’s not worked out for you.
Hypothetical Example:
A project management software company notices that many prospects are currently using a competitor’s tool but are unhappy with its features. To entice them to switch, they offer a 30% “competitor discount” for the first year if buyers can show proof of an existing subscription.
Their messaging is simple:
“Already paying for software that’s not working for you? Switch to us and save 30% – we’ll make your move worth it.”
This reduces buyer hesitation because they feel they’re recouping some of the money they’ve wasted on the less effective competitor product.
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