Many businesses, including my company, Varsity Tutors, operate according to a B2C (or business-to-consumer) framework. Thus, it is a great idea to prepare for questions about technical updates, on-going support, etc. A B2B model, however, will require you to have a thorough understanding of the technical aspects of your product, as well as everything the customer receives when he or she purchases it. Perhaps it’s the overall design of the packaging. Perhaps the color of the potato chip bag or its vibrant typeface captures your customer’s attention. The executive must be able to answer the question, “What am I receiving with this purchase?” When selling under a B2C model, your primary concern might be to immediately and simply explain why your product is better than your competitor’s. The second scenario requires deeper technical knowledge, as well as a clear understanding of the product’s components. On the other hand, so do your competitors.Ī consumer who is deciding between three brands of potato chips in the snacks aisle is likely operating on a different choice system than an executive who needs to select a payment processing solution for his or her company. On one hand, you already know to whom you should tailor your sales pitch. Your customer pool is inherently more defined, which can have negatives and positives. automobile market, so if you sell car parts, your target audience will likely be one of these businesses. Chrysler, Ford, GM, Honda, and Toyota collectively make up 70% of the U.S. In contrast, a B2B company, such as a manufacturer who makes infotainment flat screens for automobiles, might only sell to the limited number of car companies in the world. For instance, Amazon’s consumer-oriented website has a potential customer pool of millions – in essence, anyone with an Internet connection. Whenever possible, arrive with your ideal terms in mind, rather than allowing your prospective business customer to dictate them.ī2B generally involves a smaller pool of prospects when compared to B2C. If McDonald’s regularly changed vendors, it would face the logistical nightmare of having to frequently re-stock over 14,000 stores by jumping from supplier to supplier.įor you, this relationship development means exploring the fine details of a long-term deal before you meet with companies. Consider McDonald’s – the fast food chain became the single largest purchaser of apples in the United States when it added apple slices to its menu. The big box business would rather have a reliable partner that it can depend on for the foreseeable future. For example, it would be tremendously challenging and costly for Walmart to switch apple suppliers each month or each year. To minimize the likelihood of this occurring, take the time to learn who the key decision-makers are at your potential buyer, and do everything you can to make it easy for them to say, “Yes,” to your pitch.Ĭompanies typically seek longer relationships than consumers do. If even one person at any step in this process says, “No, thank you,” you must begin again back at square one or with another business. A greater number of involved stakeholdersĪs previously discussed, you will often have to speak to multiple decision-makers when pursuing a B2B partnership.
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