Hi, I have a startup and I need to figure out the price of our competition. Most competing companies have a revenue based model and to figure out the pricing one has to call and provide all details of sales, revenue model... A couple of things that I am thinking to do are: (1) have a fake identity and business and call to figure out pricing, (2) hire someone in freelance.com to do it for me. Two questions follows: 1) is it ilegal to fake an identity for this purpose? 2) Is it illegal to hire someone to figure out the pricing of competition? I do not want to know the method he/she uses. 3) Any other idea on how to do it? Thanks
Why do you need to know about the pricing of your competition in the first place? If you're offering great value, people will buy from you even if you're charging 5 times more. If you want to offer the lowest price possible to get more clients, then ask yourself how little can you actually charge. And put that price.
Spending the time to identify the price of your competitors is a waste of time. In 99% of the cases.
1. Buy a Google Voice number
2. Call using a nickname
3. Do not ask about the price when you get on the call with the sales team or whoever let them ask questions and do their pitch on the phone. Depending on what it is they may want to do demo with you via Join.Me or Skype. Just go with the motions.
4. Ask about how they separate themselves from the competition. What makes them better?
Companies love talking about themselves. e
5. Finally at the end ask about pricing.
I have done it many times.
One simple way you could do this is to offer a price-match guarantee: tell you prospective customers you will be match or beat (even by 5% or 10%) your competitors price, on production of a quote from your competitor. That way, you outsource competitive pricing intelligence to your customers. Nothing wrong with that!
Your buyer’s willingness to pay is equal to the competitor’s price plus positive differentiation value minus negative differentiation value. In other words, whatever your competitor is charging plus how much the buyer values what you do better, minus how much the buyer values what your competitor does better. You may not know how much your competitor discounts, but if you can find their list price it can be helpful. If your competitor sells to the government, their prices are likely on the GSA price list. If you use a sales channel or other types of subcontractors who also partner with your competitors, they likely have the information you seek. Often, they will learn how much the competitor is charging. Ask sales where the information came from. If the information came from a buyer’s procurement agent, they are likely telling you your competitor’s price is lower than it really is. Consider creating your own competitor price database. Log who gave it to you and the original source of the information. Over time, you may create a clear picture of your competitor’s prices and maybe even their pricing strategy.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath