Beware of 'ausser Spesen nichts gewesen'!
In German business life, there is an extensive informal network. Assignments are often awarded to well-known entrepreneurs. It is therefore often difficult to penetrate the German market. But with a clearly distinctive product or service, you have more perspective. In Germany, they have a nice word for this: "Alleinstellungsmerkmal*".
USPs* allow you to build a distinctive market position. It gives you a place among the 'settled' companies and their brands. But do you have no USPs? Then buyers will easily start using you as a price breaker. After many negotiations - often at different levels - the existing German suppliers will eventually be chosen after all. But ...........those will then have to supply cheaper in the future.
For you, the end result is disappointing: 'ausser Spesen nichts gewesen'! And it may just be that the buyers get commission. After all, they have been able to realise purchasing advantages for their company! In short, there is a win-win (for the German company as well as for the buyer), but certainly not for you!
Unfortunately, (manufacturing) companies still encounter this frequently used procurement strategy. In practice, the correct and respectful way these German buyers conduct talks turns out to be a real pitfall. The Dutch manufacturer has several appointments and presents an increasingly competitive offer. It is expected that the contract will be awarded soon. On the contrary: this offer is deployed in a power game with the existing supplier. And beforehand, the cards are often shuffled: the current supplier does not want to lose its important A-customer and gives in. Sometimes it will supply at significant price discounts and worse delivery and payment conditions.
Therefore, ask German buyers very emphatically during your first meeting: "And why exactly do you want to request an offer from us?". The buyer will never tell you that he needs three offers for a change of supplier from the point of view of his ISO policy. In short, keep on asking questions to be able to parry fallacies. In the long run, this will save you a lot of valuable sales time - making customer-specific quotations - and ........... ultimately irritation.
Then prefer to make sales calls at companies where you can offer a real problem-solving application and thus really make a difference. And preferably with companies where management, operations, engineering and procurement have already positively assessed your added value from the outset. In short, your USPs are immediately appreciated by all decision-makers as a basis for a future business relationship!
*exclusive selling point
This blog was written by Jan Temmink. View his profile here.
