Those who have no experience working with organizations find it difficult to imagine how much this type of sales differs from retail. Neil Rackham, head of Huthwaite Research Group, who has devoted a lot of time to issues of interaction with legal entities, conducted research on this topic and wrote a book. According to him, when working with corporate clients, retail sales practices may not only be useless, but even complicate understanding of the process. Let's look at the main features of sales contacts with organizations:
Large purchases and contract amounts. In wholesale sales, the buyer's side always expects discounts. You need to be prepared for this and be able to bargain in such a way as to maintain the client's interest and also get your benefit. Do not think that a multi-digit figure in the contract means a profitable deal. It is important to understand what the company's revenue will be and your personal percentage of sales as a manager.
Involvement of a large number of decision makers (DM) on both sides. It will not be difficult for an experienced salesperson to bring one person (retail buyer) to a deal, using special sales techniques. The salesperson needs to convince the consumer and a maximum of two other people from the environment.
When working with employment database corporate clients, many departments are involved in this process: they make decisions, prepare contracts, check them, approve them, etc. Someone may demand new conditions, delay deadlines.
How to work with corporate clients
Signing a contract with a legal entity is a multi-stage complex work. It is important for a corporate manager to understand this. The reason is not only that the decision is made by several officials. First, it is necessary to create an attractive commercial proposal and send it to the client.
Of course, you will not be the only applicants for cooperation. The buyer will organize a tender. If the outcome is favorable for your company, the stage of drawing up the contract will begin. It will be verified by lawyers, and may be changed or supplemented. Thus, the conclusion of the contract can be extended over several weeks or even months.
Post-payment or installment payments. Many legal entities make payments in this way. Understanding that they are of interest to large clients, they insist on favorable terms for themselves. Of course, you will receive money for your goods or services sooner or later, but such cooperation may be inconvenient. You need to have enough working capital in your account to provide a payment deferment.
Comprehensive approach. A contract signed with a major client is no guarantee that you have them on the hook. For example, if you offer equipment, it is logical that the consumer will also turn to you for its maintenance and repair. In a competitive environment, it is important to offer the buyer more than others. To retain major customers, it is strategically important to think through options for additional services that are of interest to them. This could be a discount on a repair technician's visit or an agreement with service centers to service your client on priority terms, etc.
Costly process of attracting consumers . It is much more difficult to win the trust of the management of a large company than a retail buyer. Managers have to spend a long time arranging a meeting, sending promotional brochures, trial samples of products, etc. If the deal fails, all efforts will be unjustified.