To reduce price discounting sellers need to focus on how buyers do their maths.
As with building skyscrapers, the temptation for sellers in building a business case is to add another floor of benefits in a bid to achieve the highest possible ROI for the buyer. However, it is important to remember that the higher the ROI, the greater the danger of the buyer simply toppling your figures. With this in mind, you need to help the buyer create a more credible business case on three levels…
Typically, salespeople wonder if asking ‘what is your buying process?’ is a question that will either startle, or draw a blank stare from the buyer.
The term business case can mean different things to different people. For this reason it is helpful to explain the key elements of a business case in terms of other more universally understood business planning and analysis tools. The business case combines four elements as shown in the diagram. The Building Blocks of the Business […]
Predicting the future is not easy, but that is exactly what the business case must attempt to do. This is particularly true in a time of market turbulence. Today’s perfect plan could be completely invalidated by a change in the competitive situation, an upset in the market or any one of a host of other […]
Why do buyers do what they do? Why do they choose one supplier over another and choose some projects to be scrapped, while others are advanced? These are questions that understandably intrigue salespeople. Buyers tend to reveal little, leaving many salespeople complaining that they don’t know what buyers are thinking. They may even complain buyers […]
One of the most powerful realizations for sellers is that when it comes to the complex sale there are no buying decisions, only business decisions. The implication is that buying decisions which in the past focused on the what, where, when and how, are now purely concerned with the ‘why?’ Peel back the layers of […]
The business case can take many forms, but at its core is one key question — why should we buy? or more to the point: How will this purchase help the organization (department/unit) succeed? The business case clearly outlines the value equation of the proposed purchase that reflects not only costs, benefits and risk, but also how […]
The business case requires much more than a cost-benefit analysis — that is too simplistic for complex business decisions. For example, a more in-depth analysis would highlight that while the payback from project A might be twice that of project B, this benefit may be negated when higher levels of risk are considered. Managers are […]
A business case is an economic argument for investing in a project or purchase. However, it is not purely economic, but also political. In this context the successful business case will involve a process of extensive involvement with stakeholders and will be written, or at least reviewed, by cross-functional committees. This is essential to creating […]
Clearly one of the key trends in respect of organizational buying is the movement towards the application of business logic to buying decisions. It is clear that features and benefits will not swing the big sale, forcing the seller to address the key economic, strategic and political issues if the purchase is to be […]
Would you be surprised to know that many large organizations require a business case for purchases of as little as €20,000? As one UK veteran salesperson told us recently, ‘I have seen more business cases in the past year than I have in the previous 19 years.’ There is more strategic business logic being applied to […]