B2B markets are evolving rapidly especially with regard to customers’ purchasing habits. Customers are now searching for suppliers who offer competitive prices and requesting them to offer incentives. Many suppliers respond to these requests by pinpointing the unique features of their products and services that define their competitive advantage or proposing price concessions. However, many find out that customers have other needs that do not include any of the options they offer.
Customers’ requests for incentives are misunderstood because suppliers assume that stressing the strengths of their products and services and offering price concessions are sufficient to make sales. The incentive needed is something that will make a difference in the customers’ businesses (the justifier). A justifier gives customer reasons to choose a certain supplier over others. In addition, it breaks the tie among the many suppliers that express their interest to serve that customer. The justifier is invaluable to purchasing managers because it demonstrates their contribution to their organizations.
Suppliers make two major mistakes when trying to land deals with customers. First, they focus on the features of their products and services that give them an edge over other suppliers. Second, they propose price concessions that are insignificant to customers.
Purchasing managers reject low bidders because of the fear that their deals are too good to be true. A research study conducted among 46 companies found out that exceptional suppliers use their resources to develop justifiers that serve their customers’ needs. The main sources of ideas for justifiers include ways in which customers use the offering, opportunities to synchronize their offerings with those of their competitors, and their customers’ business priorities.
Suppliers embrace either value or tiebreaker selling. Value selling involves explaining to customers why a supplier’s products and services provide greater value than those of the competitor. This approach is ineffective whenever purchases involve nonstrategic goods and services. Tiebreaker selling involves offering customers incentives that are valuable to their business and that show the contributions of the purchasing manager in the growth of the business. In certain cases, the search for justifiers is invaluable because it leads to new opportunities that increase business revenues. It is important for suppliers to develop justifiers that will give customers reasons to buy their nonstrategic products and services.