Correct

8.  Referring a prospect or customer to a competitor may be one of the single best ways to get and retain customers and to build a reputation for service.

Your long-term credibility may depend on doing just that.  Customers and clients often need specific help you cannot give.  Your alternatives are 1) simply say you can't help them and 2) refer them to someone else - usually a competitor.  Now, stop and think, if you were the customer, which alternative would give you a positive impression of the company?  Far better to give up an order and keep the goodwill than to lose both.  Of course, there's nothing to say you cannot refer to a competitor whose other services do not overlap yours or measure up to yours.  But don't be so foolish as to refer to a substandard competitor just to protect your future.  Such tactics often backfire.

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