Andrey is the owner of a company that produces custom designer furniture. Things are going well, so he decides to expand: to produce office tables and chairs. A new product line appears, but the marketing strategy does not change. After some time, Andrey sees that the idea with office furniture was not very good – the tables are not selling, he is losing money, so he closes this direction.
What was the problem? Not the quality of the chairs, and not that Andrey started expanding during the crisis. He just didn’t understand the difference between B2B and B2C sales and how to sell a new product to a completely different audience. So that you don’t end up in a similar situation, let’s figure this out.
What are B2B and B2C companies?
Let’s start with the simplest thing: let’s define the db to data difference between segmentation of B2B and B2C companies:
B2C (Business to Consumer) is a designation of commercial relationships between business and consumer. This is a common model, when goods and services are purchased directly by the end user for personal purposes. B2C sales volumes are small, but they occur frequently. This market sector includes beauty salons, clothing and pet stores, and catering.
B2B (English Business to Business)
– interaction of legal entities, in which sellers and buyers are companies, and products are purchased from a wholesale warehouse or manufacturing enterprise for the development of their own business direction or further resale. If we compare B2B and B2C, B2B deals are not concluded quickly – several months may pass from the moment of presentation of the product to the conclusion of the contract, but the sales volumes are much higher. B2B business is consulting, woodworking enterprises, manufacturers of technical equipment.
To put it simply, the main difference between B2B and B2C sales is their focus on wholesale or retail. At the same time, an organization can work in both segments. For example, construction stores sell tiles at retail to private buyers (B2C) and wholesale to companies that provide construction services (B2B). Naturally, for such a “multi-profile” business line to be profitable, it is necessary to take into account how B2B differs from B2C and use appropriate promotion tools.
We have compiled the top 5 points that a very famous example of this is jack canfield distinguish B2B from B2C sales and that directly affect the profitability of an online or offline business.
Relationships with clients
The target audience is different, so you will have to work with it in different ways. In the B2B sphere, it is necessary to build long-term partnerships, convey how you do business, what values you adhere to. In the B2C business, the priority for the buyer phone number germany is the quality of the product, affordable price, convenience of delivery, and not the relationship with the seller.
Decision making. In the b2b sphere. Decisions are made consciously. Rationally, consistently, taking into account all the. Nuances, often by a whole group of people. The b2c market is characterized by quick. Emotional purchases – if a product or service. Meets a person’s expectations. He immediately places an order.
