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You may be calling on the wrong customer

Contractor? Expander? The difference can be crucial to making the sale

By Tom Reilly -- Industrial Distribution, 6/1/2005

Customers gravitate toward one of two operating modes: those in the expansion mode (expanders) and those in the contraction mode (contractors). Their operating mode portends how they purchase goods and services, which suggests how salespeople should invest their sales time.

Expanders focus on growth. They see their world through a telescope filled with optimism. When they purchase something, they view it as an opportunity to do something new or better than they have in the past. They maximize by asking: What's the best possible alternative for us? Where do we get the most value? These are big picture people who understand that you must spend a buck to make a buck. Accordingly, they invest in their businesses and in their futures.

Expanders will view your product as an investment. They see the leverage value of your product—that it gives them the opportunity to do something they could not have done before. They may recognize that your product enables them to pursue something that has been elusive in the past.

Contractors focus on containment and constriction. They see their world through a microscope filled with pessimism. When they purchase something, they view it as a necessary evil or a cost of doing business. They "satisfice" (satisfy, sacrifice, and suffice) by asking: What's the least we can live with? These are small-minded buyers mired in transactional cost assessments. Accordingly, they spend money on purchases versus invest money in their businesses.

Because your product or service is a necessary cost of doing business, contractors try to minimize the impact of the acquisition price. Their attitude is that because they must use something, buying it cheaply is the best alternative. Obsessing on short-term acquisition costs obscures their vision for down the line value added. This commodity view of purchasing deprives them of capturing the full value of their supplier relationships.

Realistically, life may not be as black and white as this, but customers do lean one way or the other. When investing your sales time, determine which of these types you want to pursue. Can you convert the contractor to expander thinking? Optimistic value-added salespeople believe this is possible. Yet, you don't want to become a prisoner to this hope. Your challenge will be to convince this buyer to think differently about their buying practices, to view the purchase for the long haul, and the buyer-seller relationship in broader terms.

On a personal basis, the best way to get healthy is to trim the fat while growing muscle. Those who spend all of their energy constricting inevitably discover that you cannot cut your way to prosperity. Sooner or later, you must focus on growth.


Author Information
Tom Reilly is a professional speaker and author of Value Added Selling (2002, McGraw-Hill). Contact Tom by visiting his Web site, www.tomreillytraining.com.

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