Why Harland Worx
Selling business-to-business (B2B) products and software significantly differs from selling business-to-consumer (B2C) products and software, which we see daily. B2C salespeople do many things, from the sale of technology at an Apple store to selling insurance policies to protect you from losses associated with a fire at your home or an accident with your automobile or even selling you a new car after an accident.
Industrial products, which can also be software products or services, are items purchased for business or industrial purposes, not everyday consumer use. They are items tailored to meet industrial demands and specialize in producing other goods or services in various industries. Selling industrial products and software to manufacturing companies is an endeavor that requires salespeople with significantly developed skills and capabilities. This is because the items they sell have specific features and characteristics to cater to industrial requirements and are often sold as customized systems tailored to specific requirements and applications. It is unique versus business-to-consumer (B2C) or business-to-business (B2B) sales of routine supplies.
The sales process usually requires targeting multiple decision-makers within an organization. Generally, at least two, often five, and sometimes even more managers and senior company executives are involved in the buying decisions. They typically represent different functional groups within the firm and have different backgrounds and personalities. Every individual will have differing priorities, which can frequently conflict and complicate closing a sale. At the same time, it is essential to remember that each decision-maker makes rational and strategic considerations. They are assessing how a product or service can help their organization drive revenue. They will also measure how it generates value or achieves other organizational goals. They are not as driven by personal gratification, emotional attachments, and the same financial considerations that drive consumers to make a purchase decision.
Generally, B2B buyers require more nurturing to achieve a sale. They must have access to multiple contact points to build trust. The product and service information must be informative, fact-based, and data driven. The material must be communicated through various channels, including websites, social media, white papers, written proposals, and formal in-person presentations. Several of these channels need to be self-service so the individual decision-makers can explore and discover product and service information at their own pace.
Typically, projects involve long sales cycles, and the products involved often have a very long useful life. In many cases, the supplier is more interested in the revenue from follow-up maintenance, repair, and replacement components, as the revenue for those items may be much greater than the revenue from the original product sale.
The process requires communication with salespeople who must be subject matter experts, have a deep understanding of their company’s products and services, possess good communication and presentation skills, have a strong commercial sense, and have a solid understanding of their prospects' businesses.
These are usually high-price point sales with a high customer acquisition cost, and the supplier anticipates a long-term relationship with the customer. The high price point is a key driver of the long sales cycle because the buyer requires more time and information before committing to the substantial investment that the purchase needs.
There is usually a tiny lead pool, and the target businesses are often few. In many industries, the number of manufacturers in particular industrial sectors is relatively tiny. For example, the pharmaceutical revenues of the twenty (20) largest companies represent 50% of the total drug sales in the global market of $1.6 trillion.prospects' businesses.
Often, the customer is a much larger company in terms of revenue and enterprise size than the supplier. This creates unique challenges in creating a competitive position that includes the market power to maintain pricing power and the operating margins of the supplier firm. Whether the purchase is for business or personal, buyers will look for ways to get the best deals from salespeople. Therefore, strong negotiating skills and networking is key. For executives making business purchasing decisions, utilizing shorter and concise sales strategies with significant value propositions are the preferred paths to a sale.
Harland Worx has the experience and knowledge to help firms be successful and grow revenues and profits. Contact us to discuss your company’s unique sales challenges. We can also provide expertise and support for new product development and introductions, acquisitions of other companies to add new products and service capabilities, and onboarding new sales and marketing leaders.