HomeOur TeamContact

What is the B2B Sales Model [Business to Business]?

By Admin
Published in Finance
August 17, 2021
4 min read
What is the B2B Sales Model [Business to Business]?

B2B sales are business-to-business negotiation processes. It is usually between a supplier and a customer.

When your customer is a company, there are some specifics when negotiating. That’s why we made this text explaining what the B2B sales model is. After all, if your client is a legal entity, then your business solution must also be aimed at the clients of the company served.

Read the full content and stay on top of this concept!

After all, what is B2B selling?

Man handing money
scr: unsplash.com
First, it is noteworthy that B2B is an acronym used to represent “business to business”, or Business to Business, in English. In other words, it is a business-to-business negotiation process. It is usually between a supplier and a customer.

This occurs, for example, when:

  • a wholesaler resells products to a store;
  • a self-employed professional or service provider performs a task for a company outsourced;
  • a clothing factory sells items for a virtual store;
  • a store sells office furniture;

In B2B sales, the negotiation is always done through two legal entities, that is, when both parties are companies.

Thus, it is different from the B2C model, which means when the sale is made from business to consumer, or Business to Customer, in English. This is the most traditional model when we think about a transaction, since, before we were employees, entrepreneurs or entrepreneurs, we were always consumers.

It is noteworthy that the B2B business model does not necessarily need to have a selling point. Sales are usually carried out in offices or even online conferences.

What are the features of the B2B Sales Model?

In this mode of marketing, it is extremely necessary for managers to invest in customer loyalty. Because in B2B, the average ticket is usually higher and the purchase is made periodically. Therefore, those who retain their customers tend to be successful for a long time.

1. Rational sales

Business men discussing
src: unsplash.com
We can highlight that, in this sales model, both parties to the negotiation are business experts. After all, every business needs to know very well how to negotiate.

Thus, factors such as deadline, price, logistics, promotion, product quality and brand reputation are usually more carefully evaluated.

This implies that sales teams need to be very well prepared to convince customers.

2. Extensive sales cycle

Women discussing business
credit: Christina/unsplash.com
It is very normal for the sales cycle of this negotiation model to be longer. After all, sales of products or services offered from companies to companies are often made through contracts.

Therefore, both parties end up being more cautious when negotiating conditions, terms and deliveries. Not least because no one wants to take the risk of making a wrong purchase.

3. Recurrence

Business man and woman
credit: krakenimages/ unsplash.com
As we have already seen, marketing in the B2B universe ends up being more complex as the purchase has a more lasting nature.

In other words, it is normal for a company to invest time and effort in analyzing a deal, as it probably wants to remain a customer for a long time.

Advantages of the B2B Sales Model

There are several advantages that make the B2B sales model beneficial for entrepreneurs. The most common are:

1. Profitability

Generally, a B2B business is priced higher than most B2C businesses. This is because the business-to-business model does not only present a service or product, but an added value to the solution they sell.

To visualize it more easily, let’s think about the following example: when a company hires a financial consultancy, it is not only paying for the consultations and services provided, but for all the benefit that the company will generate to the client, such as avoiding scandals financial in the future.

2. Scalability

In the B2B business model, earning the trust of a large customer can mean selling different products or services to that company. In this sense, to scale sales, it is not necessary to find thousands of customers: it is enough to have a few customers so large that it is possible to gain scale within this restricted universe.

Tips to improve B2B sales

If you want to improve your B2B sales, you need to pay attention to some important characteristics of this segment. Therefore, we have separated some tips for your company to improve negotiations with other companies, check out:

1. Get to know the product or service you are selling in depth

Only then will you be able to pass on the necessary credibility that your consumers demand. Also, because organizations usually research very well before closing deals with other companies.

Before the initial approach, try to find out about the company you intend to sell to

This feature is very important for you to be able to arrive with a good preparation when negotiating with your potential client.

Therefore, try to study the company and the market in which it operates very well. This way you avoid possible setbacks or unnecessary surprises.

Also imagine the production of strawberries: a market orders 50 boxes, something that would double your daily goal. But, before making this move, you need to know what the payment credibility of this company is.

Sometimes the dream can turn into a nightmare and this sale can turn into a huge loss. So study well about this client and everything he can offer you.

2. Prioritize good service

Men shaking hands
src: unsplash.com
As this type of marketing tends to be more complex, it is essential that you offer good service in your company.

Thus, you can prospect new customers, as well as keep them satisfied and loyal to your company throughout the use of your product or service.

Therefore, we can understand that the B2B sales process is usually more complex than others. That’s because, in general, this model works with solutions that will walk along with the client for a long time.


Tags

#business2business#business#business-finance

Share

Previous Article
How to evaluate the performance of your employees
Admin

Admin

Content writer & editor on oneshekel.com

Table Of Contents

1
After all, what is B2B selling?
2
What are the features of the B2B Sales Model?
3
1. Rational sales
4
2. Extensive sales cycle
5
3. Recurrence
6
Advantages of the B2B Sales Model
7
1. Profitability
8
2. Scalability
9
Tips to improve B2B sales
10
1. Get to know the product or service you are selling in depth
11
2. Prioritize good service

Related Posts

Know the company types MEI, ME or EPP
August 10, 2021
3 min
© 2024, All Rights Reserved.
Powered By

Quick Links

Advertise with usAbout UsContact Us

Social Media