RETHINKING RETHINKING - Marketo

C H A P T E R 1 THE ODD COUPLE 19
buying cycles is that the first vendor (Column A) has the best opportunity
to influence the buyer’s requirements. Competent sellers
highlight their strengths and the potential weaknesses of vendors that
may later be invited to compete. Note that the importance of cost
lessens as the buyer’s needs are developed. If the buyer starts to see
potential value as the seller diagnoses her current situation, concerns
about cost lessen.
This supports the psychology behind a major sales blunder. Salespeople
are told (if not shown how) not to lead with product. Early in
Phase 1, if the seller mentions the product, it is very likely that the
buyer’s next question will be, “How much does it cost?” The seller
then faces some unattractive choices:
1. Try to deflect the conversation elsewhere, but run the risk of
appearing slick.
2. Give a low number so as not to scare the buyer off.
3. Give a best-guess estimate.
4. Explain that it is early in the process, and it is necessary to better
understand the buyer’s requirements. If the buyer persists, give a
range or a “not to exceed” figure that will probably be higher than
the final quote.
The problem is that since the seller has not established value,
almost any figure is going to seem high to the buyer. The longer a
seller can defer pricing and establish value, the less price-sensitive the
buyer will be, as shown in the cost curve in Phase 1. In a B2B sale,
Phase 1 ends when a buyer knows her requirements and has a good
idea of the estimated cost of the offering.
If a seller is the first vendor to talk with a buyer who has not been
looking, the ideal outcome is that the requirements list becomes a mirror
image of Column A’s offering. As you can see in Figure 1-3, this
means that sellers that are brought in later are going to be in reactive
or defensive mode because the buyer is already in Phase 2. Column
A will win the vast majority of these opportunities.