By Paul Reilly
What are your definable and defendable differences? In 1934, Russian biologist G. F. Gause published a book titled The Struggle for Existence. In it, he described the competitive exclusion principle, which states that two species competing for the same resources cannot stably coexist. Eventually, one will gain a slight advantage and outcompete the other. The losing species faces two options: adapt its competitive strategy or go extinct. Although Gause was studying bacteria growing on yeast cultures, he could be describing your industry.
Businesses are facing a pandemic identity crisis. Merger and acquisition activity is high, leaving many organizations resembling blended families. These newly combined companies are one part legacy and one part acquisition. Additionally, product commoditization and service convergence create a camouflaging effect where all options look the same. That’s a dangerous position to be in.
When buyers see no meaningful difference, they default to the most basic criterion, price. The decision becomes about the core commodity rather than the broader value delivered. Sales leaders recognize this risk, and many believe their biggest threat to growth is an inability to differentiate. Interestingly, when we ask professionals in our seminars to describe their company’s definable and defendable differences, more than half struggle to answer the question clearly.
Robert Goizueta, the late CEO of Coca-Cola, once said, “In real estate it’s location, location, location. In business it’s differentiate, differentiate, differentiate.”
You may be outstanding. But the real challenge is to stand out. Differentiation is not a luxury. It is a strategic necessity. Yet companies (and most salespeople) spend too much time trying to fit in and fail to realize that true greatness happens from standing out.
Standing out in the marketplace does not happen by accident. It requires deliberate choices and disciplined thinking. Consider the following principles as a guide.
It’s not just okay to be different. It’s necessary. When a customer says, “I can buy the same thing down the street cheaper,” that is rarely a price objection. It is a failure-to-differentiate objection. The same applies when customers claim they can purchase the product online for less. What they are really saying is that they perceive no meaningful difference between your offering and the alternatives available to them. If customers believe every option is essentially the same, price will inevitably win.
Be more curious about your potential than concerned about your competition. Many sales organizations spend enormous energy trying to beat a particular competitor. While competitive awareness is important, obsessing over rivals can limit creativity. If your goal is simply to outperform a competitor, you may build something that is merely good enough, not something that reflects your full potential. Go to market in a way that is so uniquely yours that others compete with you, but you do not compete with them.
Innovate. Don’t imitate. One of the biggest reasons companies struggle to differentiate is a lack of imagination or initiative. Instead of creating new value, they wait for someone else to innovate and then quickly copy the idea. But imitation rarely produces differentiation. For example, if you introduce inventory management programs, multiple daily deliveries, and training simply because competitors offer them, you have unintentionally commoditized your value-added services. You become more of the same. True differentiation cannot be borrowed. It must be authentic.
Solve unique problems or solve common problems in unique ways. Another powerful way to differentiate is through the problems you choose to tackle. Most companies chase the low-hanging fruit—the easy opportunities that require minimal effort. Yet real differentiation often lies in addressing the challenges others avoid. Ask yourself the following questions:
- What problems do competitors shy away from?
- What have customers accepted because they believe no one can solve them?
- What issue keeps your customers awake at night?
When you help customers solve seemingly unsolvable problems, you move beyond being a supplier or service provider and become a partner.
Differentiate by the customers you choose. Not all business is good business. One overlooked strategy for differentiation is being selective about the customers you pursue. Imagine the reputation you would build if your company became known for working exclusively with the most progressive, innovative organizations in your market. In this scenario, partnering with your company carries prestige. Customers want to be associated with you because of the company you keep. Conversely, if your client base is dominated by price shoppers and bottom-feeders, the market may assume you compete primarily on cost.
Once you clearly define how you stand out, you gain a powerful response to a common customer statement. Imagine a customer saying, “You and the other supplier are basically in the same business, right?” At that moment, you can confidently say, “We may be in the same industry, but we are not in the same business. And here’s why.”
When customers clearly understand your differences, the conversation shifts from price to value. You are no longer one option among many. You become the supplier they prefer, the partner they trust, and the benchmark from which others are measured. In markets crowded with look-alikes, differentiation is not optional. It is survival.