Customer wants to use our service , but wants to offer current provider a chance to price match . A potential customer does not want to use your service , they want to use you to hammer their own supplier on price . Which they will still use regardless . Although using you is a kind of a service you ' re providing . Generally speaking they want you and their vendor to start a price war . Unless you found this out without the client knowing , that ' s the more likely explanation . This is an experiment called bottom fishing , or economic chicken if you will . The one who doesn ' t drive off a cliff is a sissy . There is something other than price the customer values about their current vendor . If that vendor fails to articulate it , you have a shot at the business . Since they apparently have pricing power , count on them to use this as a chance to restate their value add or competitive advantage . Then finish off with your industry version of Nobody ever got fired for buying IBM substitute current vendor name . This is not in any way a skillful , new , or particularly ingenious ploy . And while you might end up with the business it won ' t be through an expert understanding of business . In hundreds of industries , newbies blunder in . Dispensing with marketing , they declare in a loud proud voice monkey see , monkey do and eliminating any sense whatsoever they slash price as their ' strategic business model nobody in the history of online business ever tried before . ' Let ' s see how well that works out after the next recession . Which is what your competitor is telling that customerinwaiting right now if they have two brain cells to rub together . And if not , perhaps the both of you can write a letter to Apple to please invade your industry and eat everyone ' s lunch .