{"id":4024,"date":"2024-03-14T08:00:00","date_gmt":"2024-03-14T08:00:00","guid":{"rendered":"https:\/\/entrepreneurship.asu.edu\/blog\/?p=4024"},"modified":"2024-03-08T19:05:23","modified_gmt":"2024-03-08T19:05:23","slug":"how-to-sell-value-not-product-as-a-b2b-entrepreneur","status":"publish","type":"post","link":"https:\/\/entrepreneurship.asu.edu\/blog\/2024\/03\/14\/how-to-sell-value-not-product-as-a-b2b-entrepreneur\/","title":{"rendered":"How to Sell Value, Not Product, as a B2B Entrepreneur"},"content":{"rendered":"\n
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Photo by Getty Images<\/em><\/figcaption><\/figure>\n\n\n

B2B (Business-to-Business) entrepreneurs are always excited about their product. You can see it in their actions and hear it in their voices. And well they should be \u2013 after all they have invested a lot of time, effort, and funds.<\/span><\/p>\n

Unfortunately, the seller\u2019s excitement alone will not translate to success. B2B customers want a product that can make a difference in their business. It is all about value creation.\u00a0\u00a0<\/span><\/p>\n

Companies measure the value they will get from any purchase against the total product cost. Total cost is comprised of the price of the product plus the company\u2019s costs of using the product \u2013 like integrating it with other systems or training staff.\u00a0 The person on the buying side of the table will develop that total cost picture.\u00a0<\/span><\/p>\n

On the other side of the table, you as the seller must develop a clear, comprehensive understanding of your product\u2019s value to the buyer. Understanding the potential value doesn\u2019t come from a product pitch.\u00a0 Let\u2019s examine what that sales conversation might look like.\u00a0\u00a0\u00a0<\/span><\/p>\n

What kind of value might your product provide to a prospective B2B customer?<\/b>\u00a0\u00a0<\/b><\/h3>\n

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Photo of <\/span>Janet Spirer, Ph.D.<\/span><\/em><\/p>\n

Value usually falls into two buckets: increasing revenue or gaining operating efficiencies.\u00a0<\/span><\/p>\n

In the revenue bucket, perhaps your product can help by adding to their portfolio because your product is a natural fit as an add-on for existing or new customers. Or maybe your product will allow them to sell current products into new geographies.<\/span><\/p>\n

Looking at the other bucket, value can be realized through gaining operating efficiencies, such as reducing operating costs, shortening order times, or improving customer service.\u00a0 <\/span><\/p>\n<\/div><\/div>\n\n\n

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How do you sell value to a B2B customer?<\/b><\/h3>\n

Begin by understanding your customer\u2019s problems <\/span>and <\/span><\/i>their successes. Entrepreneurs must understand their customers\u2019 problems to illustrate how their products can help increase revenue or gain operating efficiencies. So, start by learning<\/span> all you can about a customer before you ever meet them. Articles, websites, social media, and presentations are great sources. If companies are publicly held, 10-Ks, annual reports, and other government filings can provide a wealth of background.\u00a0<\/span><\/p>\n

Then when you meet with potential buyers, you already have a basic understanding of their business and some initial thoughts about how your product might bring them value.<\/span><\/p>\n

This is where most of your competitors will stop. But you can differentiate yourself by also learning about the customer\u2019s successes. If you understand your customer\u2019s successes, you can determine how your product can help them to continue and expand upon that success. You can position your product in a way that it stands apart from your competitors who only know half of your prospective customer\u2019s story.\u00a0\u00a0<\/span><\/p>\n

Do you know about your customer\u2019s future?<\/b>\u00a0\u00a0<\/span><\/h3>\n

An additional key to selling value is to ask questions about the customer\u2019s future direction. Unfortunately, most people focus their questions just on the status quo \u2013 the issues and problems the customer is facing right now.\u00a0<\/span><\/p>\n

Fair enough. Understanding the status quo enables an entrepreneur to present a viable value proposition to the customer that is valid today. The bad news is that simply adopting a status quo perspective means you will likely look and sound just like everybody else.\u00a0<\/span><\/p>\n

So how do you differentiate yourself from your competition? Successful entrepreneurs move to the next level. They develop a picture of the customer\u2019s future and illustrate how their product can assist in achieving those plans. Here are some questions you might start with:<\/span><\/p>\n