How do business-to-business sales work?
B2B is shorthand for ‘business-to-business’ – sales targeting organisations rather than individuals (business to customer, or B2C). The nature of your business will obviously dictate the importance of B2B sales to it. Many companies concentrate on both B2B and B2C, but others are exclusively one or the other. Companies with ambitious plans for growth may concentrate on B2B, since it usually involves much more volume than selling to individuals, and therefore can be much more valuable. For this reason, B2C businesses, such as retailers, may run a B2B component alongside their main focus.
Other forms of B2B business are based around products or services only demanded by a particular trade or industry – for example if your business specialised in manufacturing and selling certain components needed in the making of a product, you would obviously be selling B2B within the manufacturing world.
Selling B2B isn’t that different in essence to any other form of selling. Your company will still need to convince the manufacturing firm, for example, that you can handle the order better than the competition. So you’ll still send a sales representative to pitch designs and so on, and know a lot about your potential customer’s industry and business.
The difference is with this type of selling though is that the needs of a business can often be more based in practicality than the desires of an individual. Businesses will be looking for suppliers that can help them in considerations such as profitability, efficiency, or competitive edge, whereas individuals are more likely to buy things they don’t technically need.