What is B2B sales: features and techniques
What is B2B and B2C sales
B2B comes from the English “business-to-business”, which means “business to business”. These are sales in which the customers are one legal entity, and the suppliers or contractors are other legal entities. The difference between the alternative form of interaction – B2C – is that in it sales and service offerings occur in the direction from the business to the retail consumer.
There are also more complex schemes like B2B2C or B2B2B, in which the product goes through more stages of sale and even processing on its way to the final consumer. The B2G segment, in which business and the state act as counterparties, is also worthy of separate consideration. In this article, we will only touch on B2B.
B2B and B2C: what is the difference
It is best to briefly describe what b2b is, and how this segment differs from b2c, using an example.
Suppose some mobile operator provides its services to both individuals and organizations. It makes a profit from subscription payments for tariffs, additional options, corporate packages and other products.
In a b2c sale, in this case, one contract will correspond to one client and one phone number. Indeed, the purchase of a SIM card in our time is carried out strictly according to the passport – few people need more than one or two numbers for personal use. Except in special cases.
In a b2b transaction, a company, on behalf of a legal entity, can purchase several numbers in order to distribute them among employees and thus establish a corporate connection. The contract for the provision of such services may contain clauses and conditions that are not typical or even completely inaccessible to individuals.
As a result, the most basic difference between b2b and b2c from a legal point of view is that:
- In b2c, the contract is concluded between a legal entity and an individual;
- In b2b – between legal entities.
The above classification is of a civil law nature. That is, quite strict, as it relies on the legislative framework. But the term b2b itself is not only about this.
Features of B2B sales
The phenomenon of b2b can also be considered from another point of view, paying attention to the likely difference in the goals of buying from a business and a consumer. Let us briefly summarize the main ideas of the article Review of the best modern sales techniques.
The consumer in b2c buys for himself. When choosing, a wealthy client will focus on the most expensive and high-quality of what he can afford. Although in the case of gadgets, advertising works in such a way that those who do not belong to the middle class are also hunted for expensive toys. For example, a smartphone for 30,000 rubles, as it seems to the buyer, will please him more than a device for 10,000 rubles. Even if both of them can objectively cope with calls, listening to music and surfing the Internet. The consumer pays attention to the brand, design, advertising, what level the phone of his friends and acquaintances takes into account the specific functions that this model has, even its color. He is guided by individual aesthetic preferences, making a purchase mainly for his own pleasure. After all, it is a vital tool and entertainment for every day.
The advantage of b2c sales for the supplier is that he has room for maneuver in the psychological aspect. You could even call it pressure. Sellers of goods and services in the b2c segment do not disdain manipulation and neuro-linguistic programming. There is a frank suggestion in order to sell the client more expensive and more.
In b2b, things are different. Business is interested in making a profit. It doesn’t matter how – direct or indirect, but the purchase of your product should contribute to this. There are a number of business needs, based on which it acquires certain services and goods.
The goods are bought for the purpose of resale at a premium. We bought a TV set in Japan at a wholesale price of $1,000 apiece, brought it in, arranged it, and sold it in Moscow for $2,500.
The product is part of the production chain. 3D printer for making metal parts.
The service improves business processes. Consultation with a lawyer allows you to resolve disputes or draw up the necessary documents.
By the way, even an ordinary person may need legal advice. But business is likely to be interested in more specific issues, schemes, and the services themselves will be provided in a different order.