C1Dialogue5 Min.

Responding to a Competitor's Much Lower Offer

The competitor is 22 per cent cheaper — and the client is ready to switch. How to respond with confidence without matching the price (level C1).

Editorially reviewed by James Simmonds – English teacher since 2004Published 16 August 2026

SceneProcurement lead Katharina confronts James with a rival quote: 22 per cent cheaper. Instead of panic-discounting, James asks questions, compares like with like — and restructures the deal.

0:00 / 5 Min.

Tip: listen to the episode twice before you start the test. · Worksheet (PDF)

✓ To the comprehension test

James — Account manager, software vendorKatharina — Head of procurement, industrial group

Listen first, then answer. No penalties — every explanation points to the moment in the conversation.

01How does James first react to the competitor's offer?

02What does James offer instead of matching the price?

03The competitor's offer includes the same premium support tier that Katharina currently pays for.

04James refuses to match the competitor's price.

05Which word is missing?

___ we pay for the premium tier.

06Which word is missing?

Then we're not comparing like with ___.

07Put the negotiation steps in the correct order.

Transcript

The full transcript opens after the comprehension test — so you train real listening instead of reading along.

German support

KatharinaJames, thank you for coming in on short notice. I'll be direct: we've received an offer from one of your competitors, and it's substantially lower than what we're paying you. Twenty-two percent lower, to be precise.

JamesI appreciate you telling me face to face rather than simply switching. May I ask a few questions before I respond? I'd be doing you a disservice if I reacted to a number without understanding what's behind it.„I'd be doing you a disservice" – ich würde Ihnen einen schlechten Dienst erweisen.

KatharinaGo ahead.

JamesDoes their offer cover the same scope — onboarding, the dedicated support line, and the quarterly business reviews? Or is it the licence alone?

KatharinaThe licence, plus standard support. Actually, we pay you for the premium tier.

JamesSorry — actually? Has something changed in the contract?

KatharinaNo, no — aktuell. Currently. A German habit: aktuell means 'at the moment', not 'actually'. Currently we pay for the premium tier.„Aktuell" heißt „currently" – „actually" bedeutet „tatsächlich/eigentlich".

JamesThank you — that mix-up has derailed better meetings than this one. So: currently you're on premium, and the competitor has quoted you standard. Then we're not comparing like with like.„Comparing like with like" – Gleiches mit Gleichem vergleichen.

KatharinaThat's partly fair. But the gap is twenty-two percent, James. Even if I strip out the premium support, you're still more expensive — and my board sees the bottom line, not the service tier.

JamesUnderstood — let me be equally direct. I won't match their price, because I'd have to quietly remove the things you actually use, and you'd feel it within a quarter. What I can do is restructure: we move you to a two-year term, I bring the licence cost down by eight percent, and I add a clause that caps any future price increase at inflation.Statt den Preis zu matchen: restrukturieren – Laufzeit, moderater Nachlass, Preisdeckel.

KatharinaEight percent against their twenty-two. You're asking me to defend a fourteen-point gap in front of my board.

JamesI am — and I'll give you the material to do it. A one-page comparison: response times, uptime commitments, migration costs, and what switching would actually cost you in the first year. Migration alone would swallow most of their discount.

KatharinaSend me that comparison by Wednesday. If the numbers hold up, I'll take the restructured offer to the board — with a neutral recommendation. That's the most I can promise.

JamesThat's all I'm asking for. You'll have it by Wednesday, along with the revised terms.

Key phrases

to do someone a disservice

to act in a way that harms someone despite good intentions

I'd be doing you a disservice if I promised a delivery date we can't keep.

scope

everything that is included in an offer or project

Before comparing prices, compare the scope of both offers.

comparing like with like

comparing two things on the same basis

Their quote excludes support, so we're not comparing like with like.

the bottom line

the final figure; what matters financially

The board only looks at the bottom line, not the service details.

to restructure

to change the structure of a deal instead of just the price

Rather than discounting, we restructured the contract around a longer term.

to cap

to set an upper limit on something

The clause caps annual price increases at the rate of inflation.

to hold up

to remain convincing when examined

If your numbers hold up, the board will accept the offer.

currently

at the moment — the correct English for German "aktuell"

Currently we pay for the premium support tier.

Language notes

In this episode an account manager counters a rival offer that is 22 per cent cheaper — without matching the price: first clarifying scope ("comparing like with like"), then restructuring instead of discounting, finally arming the client with material for her board. Plus the aktuell/actually false friend mid-negotiation (level C1).

Questions before numbers: the scope check

James's first reaction is not a defence but a question: "May I ask a few questions before I respond?" At C1 level you justify this delay elegantly — "I'd be doing you a disservice if I reacted to a number without understanding what's behind it." The scope check reveals that the rival quote only includes standard support: "Then we're not comparing like with like." That devalues the 22 per cent gap before prices are even discussed.

Restructuring instead of discounting

Matching the price signals the old price was inflated — and destroys the margin. James takes the C1 alternative: a clear "I won't match their price" with a reason (hidden service cuts would hurt the client herself), followed by a restructured package of term length, moderate discount and a price cap ("a clause that caps any future price increase at inflation"). And he sells not to Katharina but through her: the one-page comparison is her ammunition for the board — including switching costs that swallow the competitor's discount.

aktuell ≠ actually: the false friend at the critical moment

Katharina's "Actually, we pay you for the premium tier" makes James sit up: "actually" means "in fact" and in English often signals a correction or surprise — he suspects a contract change. She meant "aktuell", i.e. "currently" or "at the moment". In price negotiations the difference is delicate: "Actually, we pay 900" sounds like a correction, "Currently, we pay 900" like a status open to change. Rule of thumb: aktuell = currently, actually = tatsächlich.

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Frequently asked questions

What language level is this episode for?

Level C1 (CEFR). The dialogue uses nuanced negotiation English — including idioms like "doing you a disservice" and "comparing like with like"; all eight key phrases are explained bilingually.

How do I respond to a cheaper competitor offer in English?

In four steps: ask questions instead of reacting instantly ("May I ask a few questions before I respond?"), compare the scope ("Are we comparing like with like?"), restructure instead of matching the price, and give the client material to defend the decision internally.

What is the difference between German "aktuell" and "actually"?

German "aktuell" is "currently" or "at the moment" in English. "Actually" means "in fact" and often signals a correction. "Actually, we pay 900" therefore sounds like a correction — what is usually meant is "Currently, we pay 900".

Where can I practise negotiation situations like this live?

In the online business English courses from Simmonds Language Services (englisch-lehrer.com/online): live lessons with real teachers on Zoom, for companies and individuals across Germany — starting with a free consultation.

Are the voices real?

Episodes are produced with high-quality AI voices (Hume) and editorially reviewed by our trainer team — the same method as our interactive lessons.

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