
3 Questions to Ask About Box 3 — Competition
1. In your last five prospect conversations, you talked about how you're different from the alternatives, not better than a direct competitor
What does "Displacement Not Head-to-Head" mean?
A positioning discipline: focus on "what" the competition is — the Most Commonly Used alternative, where you win by being different, and the Most Expensive alternative, where you win by being cheaper — not "who" the competition is.
You are not trying to take business away from direct competitors; the status quo is the real fight.
Your prospect is rarely choosing between you and another startup — they are choosing between you and continuing as they are. The status quo carries zero switching cost, zero learning curve, and zero perceived risk, which is exactly why it wins most deals.
You beat it by making the ongoing cost of staying visible, not by adding features.
1. Open every discovery call by asking what they do about this today.
2. Frame everything that follows against that answer, not against competitors they did not mention.
3. Quantify the cost of staying: "your current process costs three hours a week — that's $150 a month before the overtime."
4. Only discuss direct competitors if the prospect raises them first.
5. If you find yourself comparing feature lists, you have drifted into head-to-head. Return to the cost of the status quo.
Example: Calendly did not win by out-featuring other scheduling tools. It displaced "reply to this email with three times that work for you" — an alternative nobody had thought to call competition. That framing created the category and made the feature comparison irrelevant.
2. You have identified the three forms of competition: direct competitors, most commonly used, and most expensive
What does "The 3 Forms of Competition" mean?
Every prospect is already handling their problem somehow.
Three forms exist: Direct competitors (built for the same problem), Most Commonly Used (what they actually do today — usually a spreadsheet or absorbing the cost), and Most Expensive (the highest-cost alternative available).
Most founders position against direct competitors — who represent maybe 10% of lost deals. The other 90% are lost to "we'll keep doing what we're doing."
Naming all three forms lets you attack the alternative that's actually winning, and lets you price against the ceiling instead of the floor.
1. Name one specific direct competitor.
2. Ask 5 customers: "What do you do about this today?" Their answer is the Most Commonly Used form — write down their exact words.
3. Find the most expensive way this problem gets solved (usually enterprise software or hiring someone). That's your price ceiling.
4. Focus every sales conversation on displacing form 2 or 3 — never on out-featuring form 1.
Example: Southwest Airlines named their competition as cars, buses, and trains — not other airlines. That reframe changed their pricing, their routes, and their marketing.
For a restaurant scheduling tool: Direct = other scheduling apps. Most Commonly Used = Google Sheets plus group texts. Most Expensive = hiring a part-time scheduler at $2,000/month.
3. You have a 4 X 4 competition grid that compares your value against all three forms of competition
What does "The Competition Grid" mean?
A one-page, 4 X 4 comparison: four columns (your solution, the Direct competitor, the Most Commonly Used alternative, and the Most Expensive alternative) and four rows, each a specific, verifiable way you add value.
"We're better" is unfalsifiable and prospects discount it automatically. Four verifiable differences checked against every real alternative — not just one — answers the only question that matters to them: "why would I change what I'm already doing?"
The grid also exposes gaps in your own understanding — if you cannot fill in a column, you need more customer conversations, not better copy.
1. Set up four columns: your solution, the Direct competitor, the Most Commonly Used alternative, and the Most Expensive alternative.
2. Fill four rows with differences a customer could verify themselves. "Easier to use" fails. "Zero IT setup versus a 3-week implementation" passes.
3. Check each row against all three competition columns — you may win a row against one form and not another, which tells you exactly where your position is strongest.
4. Test each cell by asking: could a sceptical prospect check this in five minutes? If not, rewrite it.
5. Bring the grid to sales conversations rather than a feature list.
Example: Restaurant scheduling software, 4 X 4: vs. Direct competitors — real-time visibility they don't offer. vs. Most Commonly Used (Google Sheets + group texts) — automatic conflict alerts instead of manual cross-checking. vs. Most Expensive (a $2,000/month part-time scheduler) — $149/month, works on a phone on the floor instead of a laptop in the office. Fourth row, true across all three: built specifically for under-20-staff restaurants, not generic scheduling.