• Sell With Passion
    Jan 7 2025
    We often hear that people buy on emotion and justify with logic. The strange thing is where is this emotion coming from? Most Japanese salespeople speak in a very dry, grey, logical fashion expecting to convince the buyer to hand over their dough. I am a salesperson but as the President of my company, also a buyer of goods and services. I have been living in Japan this third time, continuously since 1992. In all of that time I am struggling to recall any Japanese salesperson who spoke with emotion about their offer. It is always low energy, low impact talking, talking, talking all the time. There are no questions and just a massive download of information delivered in a monotone delivery. As salespeople, our job is to join the conversation going on in the mind of the buyer. But it is also more than that. The buyer’s mental meandering won’t necessarily have the degree of passion we need for them to make a purchasing decision. So we have to influence the course of that internal conversation they are having. This is where our own passion comes in. I always thought Japanese people were unemotional before I moved to Japan the first time in 1979. The ones I had met in business in Australia were very reserved and quite self contained. They seemed very logical and detail oriented. After I moved here I realised I had the wrong information. Japanese people are very emotional in business. This is related closely to trust. Once they trust you, they have made an emotional investment to keep using you. No one likes to make a mistake or fail and the best way to avoid that is to deal with people you can trust. How do you know you can trust them? There is some track record of reliability there, that tells you the person or company you are dealing with is a known quantity that will act predictably and correctly every time. The problem with this approach though is that you will only ever be able to sell to existing accounts. What about gaining new customers? You have no track record and no predictability as yet. When you meet a new customer they are mentally sizing you up, asking themselves “can I trust you?”. Naturally a good way to overcome the lack of track record is to create one. Offer a sample order or something for free. This takes the risk out of the equation for the person you are dealing with. To get involved with a new supplier means they have to sell the idea to their boss, who has to sell it to their boss, on up the line. No one wants to take the blame if it all goes south. A free or small trial order is a great risk containment tactic and makes it easy for all the parties concerned to participate in the experiment. The other success ingredient is passion for your product or service. When the buyer feels that passion, it is contagious and they are more likely to give you a try to at least see if there is some value to continue working with you. When he was in his mid-twenties, my Japanese father-in-law started a business in Nagoya and needed to get clients. He targeted a particular company and every morning he would stand in front of the President’s house and bow as he was leaving by car for the office. After two weeks of this, the President sent one of his people to talk to him to see why he was there every day bowing when the President left for work. When he heard that my father-in-law wanted to supply his company with curtain products, he told him to see one of his subordinates in his office to discuss it. That company eventually became a huge buyer and established my father-in-law’s business. Was that a logical decision, just because some unknown character is hanging around your house everyday like a stalker? No it was an emotional decision. What my father-in-law was showing the President was his passion, belief, commitment, discipline, patience, seriousness, earnestness and guts. That is a pretty good line-up for a new supplier in order to be given a chance. We need to remember that buyers are wanting to know our level of belief in what we are selling. The way we express that is through our passion and commitment to the relationship and the product or service we supply. Is our demeanour showing enough passion, without it seeming fake or contrived? Do we have enough faith in what we are selling, that it naturally pours out of the pores of our skin? Are we painting strong enough word pictures to get the buyer emotionally involved in a future involving what we sell? Audit your own levels of passion when you are in front of the buyer. Do you sound sold on your own offer? Do you sound committed to go the extra mile? Do you sound confident and assured, showing no hesitation? Are you honest about what is possible and what is not possible? Always understand that buyers, whether for themselves or for the company, buy on emotion and justify it with logic. Make sure you can supply that emotional requirement as ...
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    13 mins
  • How To Handle “We Are Happy With Our Current Supplier” Pushback
    Dec 24 2024
    Japan loves the Devil they know over the Angel they don’t know. Change here is hard to achieve in any field, because of the inbuilt fear of mistakes and failure. This country takes risk aversion to the highest heights in business. There are no rewards for salaried employees to take risk. There are massive career downsides though, if things go wrong, due to an initiative they introduced. Personal accountability is not very popular here. The decision-making system here is also a nightmare in this regard. Who is the decision-maker? Probably no single person. The meeting we attend may have one to three people present in the room, but they are the tip of the iceberg. An iceberg we will never get to meet by the way. Behind the walls of the office, sit their other colleagues who will have to sign off and agree on the change. The checks and balances of Japanese organisations guarantee a few things. One is it makes for good communication internally. No one faces an unpleasant surprise. I have found most Japanese, as individuals, are not good at dealing with the unexpected. The sudden emergence of something that had not been previously factored in, has these staff rushing for emergency exits in fear. The other thing this system supplies is the opportunity for all the vested interests to have their say. Fast action is not viewed as a plus. Reaching a consensus is very important in Japan and people expect to have input into any new arrangements. The piece of paper suggesting the change physically moves around the section head’s desks and each one applies their hanko or stamp to the document, indicating they are okay with the change. Nothing will happen until all of those stamps are there. Turning up and finding the buying team are already quite happy with their current supplier, means a lot of work has to be done internally by the people we are meeting, to make a change away from the known and established order. Who wants more work? No one in Japan, that is for sure. When you are dealing with small to middle size firms the supplier arrangements can be even trickier. They often have a strong owner running the show. They make a lot of the key decisions and then everyone else does the execution of the decision. You may not get to meet with the dictator directly. In many cases, the current supplier company was supplying their grandfather who started the business. Many a good time was had on the golf course, being entertained in the Ginza by geisha and visiting expensive cabaret clubs together in the good old days. Gifts flowed thick and fast as well, to cement the relationship. The current generation of the heads of the respective businesses may have been at school together, have marriage links between their two families or belong to special clubs as members. I see these connections at my very exclusive Rotary Club here in Tokyo. These are successful families who move in the same circles. The third generation of family business heads have deep links together built up over the last generations. Why would they change their trusted supplier to you? Be it a big corporate or a smaller concern, there are a lot of barriers to change in supplier relationships in Japan. Frankly, we have few levers at our disposal as a result. The one thing that companies fear in common though is getting left behind by their competitors. The globalisation of business has meant these harmonious relationships between supplier and buyer are getting shaken up. Just explaining the details, benefits, quality and pricing advantage of the solution you provide are not enough. We need to lob some dynamite into their current cozy little supplier arrangements, by bringing up their exposure to being blindsided by a competitor. We need to remind them that the best solution will win in the market or at least reduce their market share. We need to point out that in a competitive industry, no one cares about the depth of the existing relationships, because they are fully focused on their survival. Rivals will make key supplier changes and these will trigger changes across the industry, as everyone else has to adjust accordingly. By getting ahead of the curve, they can win time to adjust and win market share for themselves, vis-à-vis their rivals. Price and quality differentials only become meaningful in this light in the current market. Just talking about price or quality in isolation won’t move the buyers to make any changes. The effort to make new or change supplier arrangements needs a strong reason in Japan or else everyone just defaults to a “do nothing” stance. This requires we come armed with examples of where a change in supplier arrangements wiped certain companies out. The best option is relating changes in their industry, but even if we don’t have that, we need to show evidence of how dangerous it can be to avoid change. The drivers of change ...
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    17 mins
  • 416 Mastering Referrals. How to Ask Without Feeling Pushy
    Dec 17 2024
    I have been in sales since 1988, with a slow, then fast migration of skills. I started my own small one-man consultancy in 1988 in Brisbane to assist businesses wanting to create revenues with Japan. I moved into commercial real estate in 1989, then into market entry in 1992, retail banking in 2003 and then selling soft skills training in 2010. I began my personal study of sales around 1990. The company didn’t provide any sales training, so I had to source it myself. I attended Tom Hopkins two-day Sales Seminar in Brisbane and that considerably boosted my understanding. The organisation I worked for in Japan brought in a sales trainer and I worked with him as his assistant for delivering sales training through N.E. Asia. When I joined Dale Carnegie I undertook the sales training they had and that further refined my skills to the point where I was able to certify as a sales trainer. If there is one area I see as a weakness in myself and for most people in sales it is asking for referrals. Japan shouldn’t make any difference when it comes to asking for referrals so I don’t think there is an market specificity preventing us from doing it. I had an uncomfortable experience when someone supplying me with personal services did a hard sell to me on referring him to other potential buyers. I had bought from him a few times, so there was a relationship there, but I always felt a bit wary about him. He is clearly focused on the money and fair enough, but I shouldn’t be feeling that. So when he pushed me hard on getting new business from him I didn’t like it at all. It felt dirty and unnecessary. Why do I owe him anything and have to introduce my contacts to him to grow his business. What had he ever done for me to grow my business - a big fat zero? He presumed that because I was a client, he had the right to ask me for referrals, but I didn’t feel he had won that right at all. So where is the line where we can comfortably ask the buyer for introductions to other people to get new business? I think the personal relationship is important, but they don’t have to be your bosom buddy in order to ask. Of course, if that is the case then it is easier. Firstly, we have to have built the trust with the buyer by delivering value for them. I try to make the buyers my friends, but that doesn’t happen in every case. The buyer becoming a friend shouldn’t be part of the qualifying process to be to ask for a referral. As long as we have delivered value we have a starting point. The way of asking is critical. The person I referred to, asked me in an extremely aggressive way and I didn’t like that at all. One of my failings is if people become aggressive with me, I instantly respond in kind. As I get older though, I am getting better at dealing with this flaw and when he was aggressive with me I didn’t say anything, so that is progress. The takeaway for me was never ask for a referral in an aggressive to too assertive fashion. Keep in mind the buyer doesn’t owe us anything. We need to remind them of the value we have provided. With this platform we can ask for their help. We should never ask a very broad request such as , “Do you know anyone who would benefit from our training?”. We have just opened the floor gates for them and they have so many possibilities they can’t fix on any that are helpful. It is like those consumer experiments where counterintuitively they have found reducing the number of choices on the shelves helps to move more product. We need to zero in on some choices for them to make from a limited number of people. We can say, “You have mentioned to me that you felt you received value from the training we provided. I wonder amongst your circle of family, friends, colleagues or business contacts, you can think of someone who would equally get value?”. We have reduced the entire Universe of people down to four buckets. We want them to be able to see the faces ion their minds eye so that the process is controllable. If they are struggling then we zero in on one of the buckets to see if we can spark some recognition of who might benefit. If they have someone on mind, we have to make the follow-up super easy and a light touch for them. If we ask them to call that person for us, while we feel this is perfect, they will feel that is too much. After all, they don’t work for us. However, if we say, “would you mind if I mentioned that we did some training with you and you thought they might also benefit from the same training?”. That is a light touch and easy for them to agree to. We might also ask them for the contact details of the person they have in mind and again that is an easy ask. We can copy them in on the email if we send an email and then that tells the person we are contacting that we have permission to make contact. If we do it by phone then we need to drop the name of the person who gave us the ...
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    14 mins
  • 415 Micro Stories Unlock Trust In Sales Meetings In Japan
    Dec 10 2024
    Storytelling is usually associated with novels of hundreds of pages, movies lasting two to three hours, television drama series fifty minutes long per episode. In sales in Japan we get a mini window to the buyer that, hopefully, in the first meeting will last an hour. During the second meeting, to present the solution, we will also get around the hour the buyer has allocated for the meeting with us. In both cases, we have to make sure the buyer, rather than us, is doing most of the talking. That is especially the case in the first meeting, because we don’t actually have any clear, in depth idea about what they need. The time should be spent in two phases – one establishing credibility and trust and the second phase devoted to asking questions to uncover their needs. The main opportunity for telling micro stories in phase one is around our background and experience. The buyer wants to know who they are dealing with. They want someone who knows what they are doing, someone who can help them and we need to fill in those details for them. We have all had the experience of buying something, we ask a question and the clerk says, “one moment please” and then disappears to ask someone else the answer. This is never a confidence builder. We immediately recognise we are being served by the clueless. That is the danger for us in sales in B2B situations, where we have to answer their questions without having to get the answer from someone else. We need to tell stories which will assure the buyer we are an expert in this field and we can give them concrete and valuable assistance to solve their complex problems. Usually, there is a rapport building phase at the start and this is where we can package up a mini-bio of who we are. Remember, we are a stranger to the buyer, yet we expect them to unveil all of their corporate problems and challenges. Recall what your parents told you: “don’t talk to strangers”, yet here we are trying to sell them something and they don’t know who we are. In Japan, in that rapport building phase, I am often asked about why I came to Japan. I have a plan for that question and so should you. I mention I came for two years to study Japanese at Jochi University as a Japan Education Department scholar and this has turned into 40 years. This gives the listener a lot of confidence that I know Japan and that I am an “insider” not just a gaijin or “outsider”. I also make a subtle point that actually the real reason I came to Japan was to study traditional Shitoryu karate. This reinforces for the listener that I know Japan at the deepest level having trained in the martial arts here – one of the last bastions of old style traditional culture. Establishing my Japan credentials isn’t enough though, because the issues at hand are commercial and I need to demonstrate that I know what I am doing so that I can help them. Having a strong brand like Dale Carnegie is helpful because I always mention that we started the training in Japan in 1963. This tells them we have a lot of experience in Japan, so we can understand their problems. I give them a very brief bio of Mr. Mochizuki, who launched Dale Carnegie in Japan, to personalise the point. In the second meeting, when presenting the solution, it is vital to have stories of how other buyers succeeded with the solution. These don’t have to be long stories, but they need to do three things: one, put flesh on the bone of what the solution does for the buyer in application; two, explain how that buyer was able to adapt the solution to their business specificities; and three, talk about the success they had with it. We may not be able to mention the name of the other buyer, for confidentality reasons, and we should definitely point that out. No buyer wants to hear all about the juicy details of another company and then hand over the details of their own company to you, knowing you have such a big mouth and will go around telling everyone about their secret business, if they do business with your firm. We just have to make the point it is a company very similar to the current buyer. We should talk numbers, best expressed as percentages of growth, or speedy turnaround or major cost reductions, etc. Japanese companies rarely want to be the first mover because of their risk aversion. They prefer others to trial it first and then they can study the results to see if it is for them. We don’t have that much speaking time with the buyer, so we need to have micro stories we can draw on to bolster our credentials as a reliable, trustworthy partner. We also need to allay their fears that what we have won’t work for them, by telling micro stories of where it has worked for other buyers. These stories can’t be just pulled together out of thin air in the moment. We need to have worked these up for meetings with clients before we meet them, so that they are lean and pared down for easy...
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    11 mins
  • 414 Thrill, Skill, and Follow-Through: Mastering Sales Account Management In Japan
    Dec 3 2024
    Bosses love hunters. They beat the bushes and find new clients for the business. Usually, they love the thrill of the hunt and wrestling the buyer down to do the deal. CRM systems, paperwork, boring follow-up detail—not so much. This is the preserve of the farmer. That person you can entrust the client to, knowing that they will be well taken care of. The follow-through will be well executed and, in a fair wind, will remain a repeat buyer. I'm a hunter and easily bored with the mundane aspects of sales. I'm also the boss, so I know how we need both hunters and farmers operating at peak performance levels. Here are some aspects of the farmer we need to perfect. 1. Building and Maintaining Strong Relationships Trust based on a track record of reliability and predictability is crucial. This calls for clear, frequent, and transparent communication with the buyer's side. Omotenashi—service—means anticipating and exceeding the client's needs. Client needs change, their internal structures change, and we must be on top of those changes in order to remain relevant.Farmers are good at the detail and at scheduling regular contact. Hunters have already moved on to the next exciting deal. 2. Deep Understanding of the Client Every industry and every sector is different, and every firm is unique. So the ability to tailor services specifically for that buyer is needed. That means keeping up to date with changes in the industry, economic growth rates, currency rates, inflation rates, supply chain, etc. The farmer knows who the players are on the buyer's side and what interests and concerns them. The key decision-makers can also change. Farmers keep abreast of these changes, always sensitive to wind direction fluctuation, which could eject them from the ongoing business. They know what their counterparts' KPIs are and how they are measured and rewarded. They have to know what the personal interests of the buyer are in order to provide a holistic solution for them. 3. Strategic Account Planning Design-in is the holy grail in manufacturing. It means your component or service is designed into the product or process from the start. To get to that stage, we have to know the client's plans, objectives, timelines, milestones, quality thresholds, price points, etcetera. To keep the relationship humming along, we have to stress the value we bring and accommodate the needs of the buyer from the point of view of lifetime value and not this month's sales quota. Not always easy, though. Headquarters mandate cost-cutting, and things go south very rapidly. That agreed deal is now shattered on the rocks, and the details are now flotsam and jetsam being pounded by the surf. We serve a lot of folk in the automobile sector, and we have had two major clients really pull back on their spending. They're being hammered by their Chinese EV competitors. One recently celebrated the appointment of a new CEO and promptly ceased all training and froze their programs. Ouch. The other recently informed us that the next contract will be decided by Dutch auction. The last thing you want to hear in a sales negotiation is the phrase "Dutch auction." The new contract bid starts at zero and goes up, and whoever raises their hand first gets the deal at that price point. There's no differentiation here for a quality-versus-price comparison. It is a very unsophisticated methodology but highly in favour of the low-price buyer. Procurement department buyers, who see all items like nuts and bolts—basically undifferentiated—love it. If you're in the service sector, where there are vast differences in quality provision, you are not going to love this way of thinking. Ouch. 4. Collaborative Problem-Solving The farmer sees themselves as an extension of the client's firm and gets involved to help solve their problems. They do this through the prism of their product or service. They become an outside consultancy looking for areas where they can add value. Often, as salespeople, we see across many industries. Companies in industry A hardly ever mix with companies in industry Z, but we do. We see what works and doesn't work across the range of our clients and their problems. We can bring in things we've seen work well elsewhere and help the buyer achieve the goals they have set. Let's remember that farmers are important in any sales team. Hunters may be very flashy, flamboyant, and exciting, but they often create chaos and despair. They often lose repeat business because of their lousy follow-up and poor personal organisational skills. Farmers can glue the customer to us and keep that flywheel turning. Bravo to the farmers out there.
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    12 mins
  • 413 Networking Done Very Badly. A Real-Life Lesson From Tokyo
    Nov 26 2024
    I received this note following my attendance at a networking event run by one of the foreign Chambers of Commerce here in Tokyo. “Dear Greg Story , I hope this message finds you well. It was a pleasure meeting you, and I truly enjoyed our conversation and the valuable insights you shared. Please feel free to reach out if there is anything I can assist you with. I would be delighted to stay connected and explore potential opportunities for collaboration. Thank you again for your time, and I look forward to speaking with you in the future. Best regards,”. Frankly, I was shocked to get this note. It was from a Japanese businessman, so bravo on the quality of the English. It was sent that same afternoon, so well done on the cadence. My shock was induced by the fact that we didn’t have anything even faintly resembling an insightful conversation. Our conversation, such as it was, can be recorded as relatively brief. This note, upon receipt, came across as a “canned” response which felt as if he probably sends this out to every man and his dog, so totally non-tailored or personalised and therefore a comprehensive fail. He was in the property management field, he told me, and he made no effort to filter me to see if I was a prospect who could become a client. Yet he bothered to send me this note. What was the point? Honestly, when we are networking, we need to do much better than this. In my case, I only send follow-up notes to people who are high possibility prospects. How do I know that? I filter them during our conversation. I only need a few pieces of information to work out if there is any potential gold in this conversation for my business. Their meishi or business card is the first filter. What is their position inside the company? Are they a decision-maker who can buy my training? For me, the second filter is company size. If they are under thirty people, then the chances of us doing any in-house training delivery is slight. The modest numbers of staff make it hard to justify the expense. However, they could be a candidate for sending even just one person to our public classes – a light and inexpensive option. If they have over thirty, then in-house delivery is a possibility. The next filter is, do they have any need? On the back of my card, I list the following information: “Soft skills” training, so that it is clear we are doing corporate training. I have these categories: Leadership, Sales, Presentations, Communication, DEI (Diversity, Equity and Inclusion) and Executive Coaching, all prominently displayed. On the spot, I go through these with the person I have just met explaining what we do. In a light-hearted manner, I then ask them if they need any of these? But I am deadly serious about trying to unearth any hints regarding what would help them grow their business. Some people flippantly say, “we need all of them”. That is okay, because I am not so easily deflected. I then push them for which one in particular would be the best for their people. I am trying to filter to see if there is a real need there or not. If there is, I will tell them I will get back to them after the meeting and mention “let’s get together”. I am conditioning them to have no surprise or resistance when my email turns up trying to set a time and date for our meeting. If my filters eliminate them as a potential client, then I am pleasant, but I move on and try and find someone who is a buyer. Some people say to me they find they get stuck at networking events and spend the whole time talking to one person because they don’t know how to break off the conversation and meet other people. Here is how I do it: “It has been a pleasure chatting with you. Why don’t we try to meet some other people while we are here? I look forward to catching up again in the future” and I shake their hand and simply walk away. For networking and follow-up, the process has to be well organised and congruent. There is no point sending a follow-up email to someone who is clearly not a prospect. There is no point sending a follow-up email unless you have already set it up that you will do so, rather than doing it out of blue like this gentleman did with his all weather template. I have used the example of my training company for the filters, but take your own industry sector and work out what you need to know to succeed in your business. What would be some relevant filters you can apply to strangers to know which basket to place them in? People who don’t make their living selling, hearing this brutal clarity, may feel this seems mercenary. Trust me, they have no idea they are alive. Sales is a rough and tough profession and a long way to the top if you want to rock and roll. Our most important tool is our time and how we use it. We cannot be dilettantes and swan around in a daze, like most people I meet at networking events. We have to be ...
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    12 mins
  • 412 Turning Rejections into Resilience: Dealing with ‘Dear John’ Letters from Japanese Buyers
    Nov 19 2024
    “Thank you for submitting your proposal for our capability development project. We appreciate the time and effort your team invested in preparing the proposal. After careful consideration, we have decided to proceed with another vendor whose proposal more closely aligns with our current needs and strategic direction. This decision was not easy, given the high quality of all the submissions we received.” I have stopped crying now, but this is the response I got from the buyer. Obviously, I have looked back on this deal and have tried to fathom what went wrong. They contacted us, so that means they were a hot prospect looking around for possible providers. I met with them face to face to ascertain what they wanted. This proved to be a little tricky because they were a bit vague on what they actually wanted. As is often the case with HR people, they are casting a broad net to see what they can drag in, because they themselves don’t have a lot of expertise regarding possible content. I duly took copious notes, suggested some things during that first meeting to see if there was any interest. There was interest, but looking back, I wonder now if that was only because they didn’t have a clear idea of what they wanted, so everything sounds good in that case. I didn’t just send them the proposal by email. I organised a second face-to-face meeting to walk them through the proposal, so I could gauge their body language and deal with any issues on the spot if they were unclear or uncertain about the contents. All textbook stuff. I left that meeting feeling like I had the winning formula for them, so I was devastated when I got this rejection. Was it the money? It could have been, because my pricing was 16% higher than what they spent with another company for the previous year’s training. I didn’t think that was outrageously different though, and I tried to assuage the price rise with loading on the value we provide. When the HR people see the training supply as a commodity, however, with no differentiation, then price becomes the easiest tool to wield. I could have just matched the price with what they paid the previous year, but if you believe in what you are doing, you have to defend the quality, the brand, and the differentiation you bring to the equation. It is a risk and in this case, it didn’t fly. Was it the content? This is hard to say because their needs were open and broad. They didn’t really have a clear picture of what they wanted, which was good and bad. Good, because it opened up a lot of possibilities and bad because it opened up too many possibilities. We all have our limitations as suppliers and our areas of strength. We tend to work within certain frameworks, because that is the content we are most familiar with and most confident in. It is always better to have a buyer who is very specific about what they want, and there is the downside that you don’t have it at all. That is okay, because that at least tells you why you failed to get this deal. It is that buyer vagary which is frustrating, because you could have made the deal but you are never really sure at the end as to why you didn’t. Was the chemistry not there with the buyers? I would say in this case I was too confident about the chemistry. I thought I did a good job in both meetings with connecting with the two HR representatives. One of the problems with chemistry, though, is that it isn’t a huge differentiator and it is easy for a rival to match you in this element. Salespeople, by definition, are good with people, good communicators and we are all the same in that regard. Maybe my successful rival was equally charming and engaging and what I was doing wasn’t a big enough differentiator to make a difference in the end. One thing which on reflection may have been a mistake is we spoke in English. We could have chosen either language, but one of them seemed to want to speak in English and the more junior person in Japanese. It may have been better for me to speak in Japanese with them. There were no communication issues with our conversation, but it may be a comfort factor which I could have paid more attention to. This was a multinational company so English is expected by people in their roles, but we are still in Japan. I don’t believe this was a deal breaker at all, but it is something to consider. The argument can both ways also that speaking in English with a multinational company emphasises your suitability for them over a pure Japanese domestic supplier. It is not definitive, but something I will pay more careful attention to going forward. Can I get a clear answer as to why the deal didn’t get done? Basically no. The buyers don’t want to get into justifying their decision for you. They have taken it and they have told you there were multiple options and they chose another one rather than you. In these cases, I just write back ...
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    12 mins
  • 411 The Limits of Opportunity Cost in Japan: A Sales Guide to Winning Reluctant Buyers
    Nov 12 2024

    n the West, we often emphasise that inaction doesn’t necessarily mean safety for the buyer, and there is a real cost to taking no action. We talk about the “opportunity cost” of doing nothing. A buyer’s competitors aren’t stagnant; they’re actively seeking new advantages with something better or more advanced. The market is never still either, as it’s always shifting, and companies need to be agile to keep pace. Economic conditions are equally unpredictable, with movements in currency, oil, gold, agribusiness etc., and other factors creating constant change.

    In this volatile environment, companies can’t afford to stand still. Innovation, adaptation, and flexibility are essential. Any opportunity to strengthen an offer relative to competitors must be seized and maximised. The ideal outcome is one where our offer can’t be easily compared to what salespeople know as the “Matrix from Hell.” This matrix, favoured by procurement departments, lists items to be purchased down the vertical axis and supplier names across the top on the horizontal axis. Prices are then compared, and the cheapest option is chosen.

    We don’t want our offer to fall into this pricing matrix. Instead, we aim to differentiate our offer so that it defies easy comparison. We need to add value beyond price alone. If our offer lacks the necessary depth, we need to think creatively about what we can provide to stand apart, avoiding price reductions or loss-leader tactics. Our goal is to create “apples to oranges” comparisons, making it impossible for price to be the only factor in the buying decision.

    As a result, we constantly highlight the downside of inaction to the buyer. In this VUCA world (volatile, uncertain, complex, ambiguous), how can any company feel confident doing things as they have always done them? The ground is shifting beneath our feet, and companies need to be capable of responding. As salespeople, we represent something new and different for the buyer, offering them a lifeline to navigate the daily VUCA challenges.

    Do Japanese buyers see it this way? Unfortunately, they don’t. Change in Japan is a double-edged sword. Intellectually, it’s acknowledged as necessary, but buyers instinctively resist it. They closely associate change with risk. Culturally, Japan emphasises group dynamics, partly to disperse any risk among all members, so no individual is held accountable if things go wrong. Japanese salespeople, for instance, prefer bonuses over individual commissions, as they feel more comfortable being rewarded as a group.

    Buyers share this perspective. They don’t want to be singled out over a purchasing decision. Collective agreement to change suppliers or add a new supplier feels much safer. The ringi seido system of collective decision-making perfectly suits this desire to spread accountability. By obtaining the seals or hanko of all key decision-makers on a proposal, the potential blame is shared if something goes wrong.

    A salesperson parachuting in with their shiny idea about the opportunity cost of doing nothing quickly finds themselves in a thorny position in Japan. No one here is likely to get fired for missing an opportunity. Buyers fear mistakes far more than they fear a lack of urgency. With no pressure to act, talk of “missing out” seems quaint. Here, doing nothing isn’t equated with loss; in fact, it’s often praised, as it avoids risk and keeps the enterprise safe.

    This cultural inertia partly explains Japan’s relatively small venture capital market, the lack of unicorns, and the many “zombie companies” that neither thrive nor disappear but manage to survive. Everyone involved seems determined to make no changes, ignore opportunity costs, and look away from change, hoping it will pass them by.

    If you’re passionate about motivating buyers to embrace change or realise the consequences of opportunity cost, be prepared to feel like you’re talking to yourself. Japanese buyers see no upside to making changes and plenty of downsides, so they tend to hold their ground. That doesn’t mean we shouldn’t try, but we should avoid making opportunity cost our primary “hail Mary” play to close the deal.

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    10 mins