What is the Most Critical Difference Between Selling B2B and B2C that NO ONE Talks About and How It will Save You Time and Money

By Press on February 18, 2016 in Passive Income Journey
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Most people get the B2B and B2C concept wrong.  If you are selling to or supporting B2C software, you know it sucks.  Believe me or checkout Patrick Mckenzie’s experience in supporting the lovely customers from his BingoCardCreator business in the past.  He went from joyfully emphasising the important of treating your customers like god to sick and tire of his customers in a few short years.

So Why Serving B2C Sucks?

Mere mortal thinks B2B is Business to Business and B2C is Business to Consumer.  You see, you never actually serve a business, you server the owner of the business.  By extension, it’s always people serving or selling to other people.  So what exactly is the difference?  It is the mindset of the persons behind the acronyms.  It has nothing to do with B or C, it has everything to do with who these 2 types of people value their time.  Let’s unveil what’s behind the B2B/B2C maskes:

B2B = Employer 2 Employer

B2C = Employer 2 Employee

So what’s so special about its?  Isn’t it just another way of saying the same thing?  Here is why:

Employer Values Time Over Money.

Employee Values Money Over Time.

Employer spent money to buy other people’s time to create products or services for resell.  Employee selling their times to create products or services to earn money.  So when presented a problem, the first response of an Employer type is to spent money to buy a product or service to solve the problem for him and see if there is opportunities to package and sell this solution to benefit other people.  On the other hand, an employee type would immediate thinks about how to spend time and effort instead of money to solve this problem himself.  Employer type is also less price sensitive since the money they spent is in the context of the value the solution creates, if he do it right, he will not only have the problem solved but also make a small fortune by selling the packaged solution.  For an employee type, he will compare the money he has to spent in terms of his hours rate.  He will think in terms of how HARD he work for his money vs how HARD the solution provider work for his money.

Employee types are usually shitty customers since they link money to how hard they had to work to get it.  They never think in terms of the value their work provide.  In my past, I had to deal with a lot of engineering process, best practices, cross-cutting architecture and platform issues.  In the latest reincarnation of software requirement, I had to review and prioritize the architecture feature list or product back log from my team.  These lists are usually prioritized based on complexity and difficulty to implement.  Mind you, just because a feature is complex doesn’t mean it is difficult, also, a feature that has a high difficulty doesn’t mean it is complex.  None, I mean none of the team members came up with a sensible Business Value vs Effort Matrix.

Business Value vs Effort Matrix

A business value vs effort matrix or in my mind, just a simple ROI matrix will provide so much more value to the company than all the gruelling and meaningless meetings.  I created a simple process that cut the average build time for each developer by 30 min to 2 hours a day.  That’s 130 to 520 hours a year per developer, multiply that for approx 300 developers in that programme along has saved the company 39,000 to 156,000 man hours a year.

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