One of our main competitors has just launched an AI powered service that is sixty percent cheaper than our core offering, and our sales team is panicking. How do we use our EOS tools to address this threat without destroying our margins or panic slashing our prices?

Question

Tyler Smith · Accepted Answer

When a competitor slashes prices using AI, do not panic and follow them into a race to the bottom. Instead, use your Level 10 Meeting to IDS the threat systematically. Start by employing AI for Scenario Simulation during your next leadership session. Ask the technology to simulate the competitor economic outcomes, customer reactions, and likely service quality issues that will arise from their cheap, automated model. This simulation will help you identify the critical gaps in their offering. Next, review your V/TO, specifically your Target Market and Three Uniques. A competitor offering a cheap, fully automated service is targeting customers who only care about low costs. That is likely not your ideal client. Your strategy must be to position your business as the indispensable complement to the technology they are using. Focus your sales message on the high value strategic advice, custom integration, and human accountability that a cheap software bot cannot provide. Update your Accountability Chart to ensure your team is freed from routine tasks so they can deliver this high touch value. By doubling down on your uniques and letting AI handle your own operational efficiency behind the scenes, you can maintain your premium pricing while letting your competitor struggle with the low margins of a commoditized service.