B2B, business to business definition: Business-to-business sales (B2B) are just that, sales from one business entity to another.
Financial crisis, competition and the growth of online marketing have been a great challenge to business-to-business markets. The resulting competition from other cheap markets has created a lot of pressure on the business margins leading to price reduction. Reducing product prices has consequently made the businesses less profitable.
The prevalence of second competition in b2b markets means that you have to create value to retain customers and attract more others. As a result, you must be quite knowledgeable before making a decision in this market. More buyers concentrate on the value while a few focus on the prices.
Look at some points that will help you sell your products basing on the value rather than the price.
1) Decide who you don’t want to do business with
As a b2b entrepreneur marketer, differentiate your customers according to their needs. Creating segments helps improve customer choice. Besides, as a b2b supplier, you get to make a personal choice on who you don’t want to involve yourself with in business.
2) Improve your margins by selling outcomes
You can improve your profit margins by selling results rather than the products. Since your b2b customers will also be looking for issues, ask yourself what you are selling and build your sales approach on that result. You can as well use product features to improve the results that you are selling.
3) Be aware of customer requirements
Do a research on customer needs and find out what your clients will buy. Customer needs can change over time. Conduct the research more frequently. An independent market research can go a long way into building your understanding of customer needs.
4) Remember most b2b customers don’t concentrate on the prices
Most b2b customers don’t prioritize on prizes. Instead, focus more on the value of the products that you are selling. Basing your sales on the values of the products can help you improve your profits margins. Be a pure sales person and keep in mind that it’s never about prices.
5) Talk about the Return on Investment of your value proposition
When you are trying to sell something basing on their value and not the price, explain to your customer the returns on investment. For example, if you are selling a more expensive juice blender than a competing brand, how much can the customer save over a period? Make all your b2b sales and purchases with ROI at the back of your mind.
Eventually, you will realize that selling products basing on value provide your customers with an understanding of how to make investments that are worth their money. Use the needs of your clients to perfect on your b2b sales skills.
Buy our course here to learn how to sell Value instead of Price.