50 Vendors Selling to 1 Buyer
I am in awe of how much retail buyers handle each day. Retail buyers are the folks who decide which goods are “on-shelf” when you go into a store or online to shop. Buyers at large retailers can have more than 50 vendors within their category. They are the lucky ones who get to hear the same, or at least similar, sales pitch 50-70 times per selling season.
Just as I am wowed by a buyer’s workload there are some terrific sales account leaders working for manufacturers who consistently put their customer first and create real value. Notice I said customer and not customers. A sales account lead working for a large manufacturer and calling on a large retailer might be responsible for just the one retail account. That is a 50:1 ratio with the buyer having 50 vendors, but each manufacturer sales account lead calling on just one buyer.
Why does this 50:1 headcount imbalance exist? What are the implications? And will this imbalance continue?
To understand why one buyer is responsible for so many vendors it is important to understand how shoppers shop a category. It’s all about choice! Shoppers shop by category for what they want when they want it... Think of candy as a category when the shopper wants a treat or the pain relief category when they have a headache. A powerful driver to have just one buyer per category is the need for holistic decision making. Some buyers today are asked to buy for more than one category (which can mean even more vendors) as retailers look be more efficient and cut costs.
If a retail buyer has on average 50 vendors, why can a sales account lead for a large CPG manufacturer have just one Customer? A sales lead is competing for limited shelf/page space against 50 other vendors also vying for the buyer’s attention. Standing out is not easy. Failure to stand out with a large retailer is not an option because they represent a large percentage of potential shoppers. The cost of dedicating a single sales lead and even a larger supporting team to a single retailer is usually a good investment. A dedicated sales lead is often expected to live in the same city as the retail buyer, to be on call, and to help resolve issues. Building meaningful relationships and providing excellent service can lead to additional sales.
When calling on a retail buyer remember that there could be 50 or more of you and only one buyer. Let that sink in and recognize that based on that imbalance alone, there are some things you can do to have a positive impact and grow sales.
DON’T WASTE TIME If buyers talk to their vendors 1x per week, that’s 50 conversations. Even if the conversations last just 15 minutes each.. that’s 12.5 hours out of a buyer’s week. Find ways to make sure that every meeting counts with a clear objective and short/concise presentations.
BE PREPARED A Biznology B2B survey indicated that 82% of retail buyers believe that their sales counterparts are not well prepared. This must be especially frustrating if the buyer knows that they are your only customer.
DON’T BE BORING If the buyers are responsible for 50+ vendors, imagine how painful it must be to hear sales reps say basically the same thing… “Our product is the best” or “Your customers are shopping online more often”. It took me awhile to learn, but shorter is better because chances are the buyer has already heard something similar from one of your competitors.
ADD VALUE Be easy to do business with and focus on solving problems that matter to the retailer. Bringing valuable insights with a clear call to action are usually well received.
KNOW YOUR ROLE Does your buyer prefer a transaction based co-existence? Or value a shared goal driven relationship? Something that extends outside of the office? Sometimes there is just no time for small talk, and some suppliers think asking about “the family” is a win. For example, one buyer shares, “just because I am visibly pregnant doesn’t mean I want to talk about it with you”. Imagine having to talk about something you don’t want to 50 times… Being in Sales should mean you can read the audience and know what role your company is expected to play.
For many of the same reasons the imbalance currently exists, the 50:1 ratio can be expected to continue. Technology may create some efficiencies but selling to and serving customers remains a very human experience. Executing a sales plan takes time, relationships evolve, and negotiations are ongoing. Even once a contract is signed (the shelf or page space determined), there are always incremental opportunities that pop up, new problems to solve and shoppers to engage. If you are the sales account lead you want to be the 1 out of 50 vendors to get the buyer’s call for help so that you can provide additional value and drive more sales.
Originally published on LinkedIn, https://www.linkedin.com/posts/raymondboyd_b2bsales-sellingskills-cpg-activity-6625829718870548480-ofND?utm_source=share&utm_medium=member_desktop&rcm=ACoAAACGT7sB2LWYF_FLIAeY2hcv4cpVpucD_kc
