Auto news on Youtube Jan 29 2018

- What's the difference between B2B

and B2C sales?

The B stands for business,

and the C stands for consumer,

that's the easy part, right?

But the way this works is that

if I'm talking about a B2B business,

that means I am a company,

and I am selling to another business,

what that is fundamentally defined by is hierarchy.

Typically structures, when you talk to another company,

is very, vertical.

That means I need to talk to person,

that person has a boss,

and that person probably has another boss.

That means that sales like this can be very long,

the larger the company you deal with,

the longer the sales cycle,

because you need to talk to all the levels,

and they all need approval.

It's also fundamentally defined by the fact

that you can fire somebody.

I'm talking to a person in a company,

certain functions, certain title,

but his boss, or her boss, could fire him,

which is absolutely not the case in B2C.

In B2C, I am a business,

and I'm trying to sell, or I'm selling

to consumers directly.

What's there very different is that

there is no vertical hierarchy,

it's actually almost horizontal,

because then suddenly,

you have the effect of what I call circles of influence,

that means I have a girlfriend that has something to say.

I have my mother-in-law that also has something to say,

so I need to balance how I go about.

So in one hand, in B2B,

you're more talking about revenue,

and cost decrease, and really tangible, measurable

elements in your value proposition,

where B2C, you're going to go very different,

it's all going to be about emotions.

Why would you need such a product?

Because you would look good to others,

or you will feel better,

that's the fundamental difference between the two,

that also explains

why B2B takes longer than B2C.