Navigating B2B Sales Changes During COVID-19
B2B, or business-to-business, sales are when a company directly sells products or services to another business rather than to a customer.
There are 3 primary types of B2B sales…
- Supply sales
- Service/software sales
Supply sales are when a seller provides products that support the operation of a business. These sales encourage the allocation of supplies within a business. An example would be the printer, office supplies, or uniform sales.
The difference between B2B sales and your typical business-to-customer sale is the quantity purchased. Supply sales are typically bought in bulk for the entire business, rather than just the sale of one product for an individual.
Wholesales, or distribution sales, are when a seller provides products that will be retailed by others. This means the business buying the product will not be the final buyer. After buying, they will then sell the product themselves through a business-to-customer sale.
An example of a wholesaler could be a fruit company selling their apples to a grocery store in bulk to be then resold at a higher price to customers.
Service and software sales are when a seller provides a service to a business rather than a product. This can take the form of a consultant or a new software to increase efficiency.
B2B vs. B2C Sales
Business-to-business sales differ from business-to-customer sales in more ways than one. B2B sales typically have a higher transaction value, longer sales cycles, and multiple stakeholders.
Higher Transaction Value
The number of products exchanged and the price value of B2B sales is remarkably higher than in B2C sales. This is because when a business buys from another business, they are not buying singular items but a larger quantity of products to be either distributed throughout the company or retailed to another customer.
The sale of a service or technology is also higher in B2B sales because it costs much more to provide a service to an entire company than a singular customer. And yes, we’re talking about thousands, even millions, of dollars compared to a couple hundred.
Longer Sales Cycles
B2B sales are typically not spur of the moment decisions. A lot of thought goes into deciding what is the best software to implement or product to resell before B2B transactions are made.
Usually a business will research a few different options before settling on a product. This takes a longer amount of time than B2C sales because of the complexities involved and increases the steps taken within the sales cycle.
When a business enters the market to find a product or service, there is typically not one singular person in charge of making the final decision. With B2B sales, before a purchase can be finalized, it usually has to climb the hierarchical ladder of company representatives before it reaches a final “yes”.
Creating B2B Sales
After a company has decided it wants to sell a good or service, it must figure out the best way to get its product on the market.
By gaining insights on the market it is trying to enter, targeting a specific type of business, and testing different sales methods, a business is more likely to succeed at creating B2B sales.
Starting out with cold calls and emails is a typical move, as it is easy enough to do by oneself. Often, businesses also reach out with free trials and offers as a way to give their product more exposure.
Sometimes it may be hard for a business to get its ideas up and running. They have a product, but still lack the sales. This is when hiring a professional, such as Pearl Lemon Sales, may come in handy.
Finding a sales agency that helps increase transactions is one way to grow a business’s sales program. A lot of the time a business will lack the proper knowledge and resources to expand their clientele, so hiring someone else that does, can help a business grow.
Just think of it as utilizing B2B sales to create B2B sales.