Our main competitor just announced a fully automated AI service that is priced at a third of our current rate, and our sales team is panicked. How do we structure an IDS® session to protect our market share without entering a race to the bottom?

Question

Tyler Smith · Accepted Answer

When a competitor drops prices using automation, your sales team will instinctively panic and ask you to cut prices. You must resist this reaction. This is not a predicament you must succumb to; it is a problem you can solve.

Bring this issue to your next weekly Level 10 Meeting™ and use the IDS® process to identify the root cause of the threat. Is the competitor actually delivering the same quality, or are they selling a cheap, automated substitute that will ultimately frustrate their clients?

In most cases, fully automated services lack the contextual nuance and relationship trust that high-value clients actually pay for. Use the Trusted Advisor framework to analyze your relationship equity. Clients do not just buy raw outputs; they buy peace of mind, strategic partnership, and accountability.

If you must adapt, do not drop your rates for your core service. Instead, use your V/TO® Marketing Strategy to clearly contrast your high-trust, expert-validated model with their low-cost, fully automated model. You can also introduce a lower-tier, semi-automated offering of your own to capture the budget-conscious segment, but keep it completely separate from your premium brand. Define this distinction clearly on your V/TO® so your sales team has a clear script and does not default to discounting your core value.