B2C, B2B, or Both?
One of the most crucial decisions you have to make during the launching or planning of a business or product is whether you’ll be targeting only final consumers (B2C) or other businesses (B2B). By finalizing on one, not only will this affect your marketing strategies, but it will also help you in building your operational structure as well as your supply chain management.
However, we’ll stick to marketing today.
In order to generate a healthy profit, your sales volume plays a significant role in helping you achieve your targets. However, an average person usually never needs to buy a specific product in high quantity. Apart from that, if you have a million people buying that one particular product, then that would be another side of the story.
That’s basically how a B2C and B2B business runs. One is after a single buyer you have the potential to buy in bulk, while the other is after a target crowd so that they can sell their product to all of them. Regardless of which path you take, maximum profit is where all eyes are.
Wouldn’t it be nice if you could target both types of customers? Well, that’s what I’m about to discuss.
What It Means to Be a B2C and a B2B Supplier
As a B2B supplier, you’ll always be dealing with businesses that’ll buy from you in bulk. They may purchase units in thousands and even millions from you. In return, your B2B buyers will expect you to meet deadlines and be consistent in providing them with both quantity and quality at the same time. Having loyal clients that buy from you consistently is a significant advantage. However, it’s pretty evident that these global buyers will always pay you less since they are buying in bulk. That’s where you’d prefer being a B2C business for the time being.
B2C suppliers are devoted to fulfilling consumer needs and wants. We can call retailers a B2C business. Apart from that, many ecommerce websites are also operating on a B2C module. However, unlike B2B, your marketing and sales strategies need to be fast paced and result orientated. The more time you take to convince them the more time you’ll be giving to your competitor to steal the customer. Therefore, you have to make sure that all your sales and marketing strategies are on point and actionable.
Marketing To B2C and B2B Buyers Together
I’m pretty sure by now you’ve realized that marketing to both types of global buyers is entirely different. While B2C marketing focuses on convincing consumers to make a purchase instantly and targeting their needs, B2B marketing is dedicated to offering expertise and educating the potential buyer.
In order to run a business that targets both types of buyers, your focus should be on cost savings. Since you can get orders for a single unit and 100 units, you need to set a price that is flexible and is ideal so you can make a profit on both types of orders. In addition, bulk buyers always expect a discount, so make sure you maintain a margin of discount in your price so that you don’t make a loss when selling at a lower price.
One of the best techniques you can utilize to go with a dual model business is by launching an ecommerce website. That way, you can easily take orders from both types of buyers. Apart from that, you can provide contact details for those buyers who wish to buy in large quantity and are willing to negotiate a deal.
You Need To Be Careful From...
One point that I’d like you to be careful about is the stock you are planning to maintain at your warehouse while thinking about targeting both audiences. Running a B2B and B2C business is possible, but your inventory can play a significant role in building or destroying your reputation.
For example, if you sell a specific product at a reasonable price to a B2C buyer and B2B buyer, the chances are that your stock will run out before that same B2C buyer gets a chance to buy again. In addition, there is no guarantee that the next batch that arrives was produced at the same cost. Your prices can change in every few months, and that can make it hard for B2C buyers to come back to you. We advise that you divide your stock according to the demand and keep both your customers happy.
Although running a combined business is no walk in the park, it’s possible! In addition, you also get a chance to explore different markets and opportunities which can help you become a successful business in the future.