Selling to B to B Companies in a Down Economy

By Guest Author Linda Bishop

[In this series, Linda considers how salespeople can adapt their approach to thrive even in a tough economy. In the first two installments, she stressed the need for a superior sales force and discussed how customers asses price. You can find out more in her book, “Selling in Tough Times”.]

Are you selling a product or service to B to B companies? This excerpt from “Selling in Tough Times” looks at your client’s world and tells you what is happening as they adjust. It’s followed by a few thoughts on why it’s time to look at buyer’s definition of value with fresh eyes.

Budget cuts prevail. Customers have less to spend so cheaper substitutes look attractive. You must do a better job of selling value and demonstrating your product is worth its price.

Pain points shift. In good times and bad, eliminating customer pain sells product. During tough times, customers experience falling demand, fewer sales, budget cuts and layoffs. All cause pain and create a different set of problems. Success comes to salespeople with solutions relating to what matters to customers right now.

Cycle times shift. The quickest way to make a sale is by saving the customer money on a necessary expenditure. On big ticket items and new projects, buyer angst adds time to the selling cycle. Be prepared to work harder and wait longer for those sales to take place.

Established customers shop. Sure, your customers like you. Maybe they even love you, but they’re human and motivated by their own best interests. With less to spend, they shop to save. Help customers look good to their boss and they’ll love you more.

Competition intensifies. Customers entertain new vendors touting cheaper products. Discounting increases. If you lose business in established accounts, it’s time to get out and find new customers.

During tough times, step into your customer’s shoes and walk in their world. Understand their concerns. Understand their boss’ concerns.

In a downturn, the pace of change speeds up. You face new threats but also benefit from new opportunities. Prospects that refused to take your calls in the past will now see you. Last year you proposed a brilliant solution to a problem and the client pooh-poohed it. This year, they give it serious consideration. Buyers with new pain open their minds to a broader range of options and substitutes.

In good time and bad, everyone has concerns about price. To overcome concerns, you must demonstrate value and value, like beauty, always lies in the eye of the beholder.
Take a moment. Consider the following purchasing decisions. Think about your personal perceptions of value in each situation.

Every answer you gave is an assessment of value. Value collects functional and emotional benefits and bundles them together. Value performs tasks, provides pleasure and satisfaction, and permits us to sleep at night. When buyers won’t pay our price, they tell us either:

“Sorry, you’re not worth the money”

or

“I don’t have that much money to spend.”

Right now, every business must insure their sales force does a better job of communicating value to prospects and current customers. Marketers must re-examine company value propositions and insure they are truly meaningful to the targeted audience. For many of us, we need to do a better job of recognizing that the customer’s definition of value has shifted, and adjustments are required to insure we continue to fit.