A Breakdown of Selling B2B vs. Selling B2C
I just walked in the door from Belsito’s Deli – my favorite spot in Worcester for “grindah.” Kenny, the owner, makes a mean meatball & hot Italian sausage with American cheese grinder (pronounced grindah – aka: hogie, hero, sub, po-boy, hero).
I could have gone to one of those big national sub shops…it would have been cheaper, but not nearly as delicious as old Kenny’s meatball & sausage grinder.
While I was at Belsito’s, I saw an electrical contractor that I hadn’t seen in years. I asked him, “How’s business?” He said, “It’s TERRIBLE!” I asked nonchalantly who’s responsible for the “TERRIBLE” situation…you should have seen the look on his face!
So I guess now’s a better time than ever to segway in to a good topic for today’s security marketing email.
Wanna Be Dead Broke? Then Maybe You Shouldn’t Sell Cheap.
The Psychology of Selling B2B vs. B2C…
There’s a common misconception among security dealers that selling an inexpensive, cheapo security system is easier than selling an expensive, high-end system. Wrong – O, Daddy – O…
Many security dealers think selling a security system for $99 dollars is easier then selling a system for $5,000.00.
Let’s take a peek at this myth and uncover an interesting psychology about the B2B (Business to Business) crowd vs. the B2C (Business to Consumer) crowd. At first glance, you’d think that the $99 decision would be easier then a $5,000.00 decision. But is that really the case…?
A business owner looking to make a $5,000.00 decision knows his budget constraints, knows the value of $5K in terms of R.O.I, and the time value of $5K. Conversely, the person making the $99 decisions has a whole host of decisions vying for his money, like food, rent, gas, going to the movies, and buying a pack of butt’s. So that $99 decision is not really any easy choice after all.
In the gist of it all, the $99 purchase has 100 times more competition then the $5K purchase decision.
You see one decision is purely business, and the other is discretionary income. I would much rather appeal to a business owner’s logic for securing his company, then vying for the discretionary income of an apartment dweller with a low credit score.
This is just purely my thinking on this one… Would you rather sell to a market that is full of real competition and is competing on price OR a market where your competing on the value of the offer?
What I’ve noticed is that consumers faced with fuel prices, higher taxes, the threat of job loss, and can’t buy that $5dollar cup of coffee at Starbucks are disconnecting there monitoring accounts. If you had a small business based on the luxury coffee trend, you’d be out of business by now.
This is what has happened, case in point, with the closing of 600 Starbucks cafes.
This is how quickly things can change when dealing with consumers and discretionary purchases. Consumers, when faced with a choice, may choose to disconnect there security monitoring.
Instead of chasing down every low credit score person who is barely holding on to there mortgage payments, consider finding businesses and business owners who need and want, and can afford your security services, or people with better credit scores if that’s your market.
Note to self:
The business battlefield conditions are dynamic, but this principle for increasing your personal income is etched in stone:
To improve your income, improve yourself.
And that’s a wrap Jack!