Home > Approach > Merit of product over profit margins? what are businesses looking for?

Merit of product over profit margins? what are businesses looking for?

I'm relatively new to B2B sales, coming from a background in promotions, and I'm trying to sell a multi-surface cleaner (wood, glass, leather, marble, metal, upholstry, carpet) to various hardware stores. However, I'm a little unsure what to focus on as far as the main selling point of the product, being I've never sold a product before, only a service. What do most business owners pay more attention to? the merits of a superior product? or the profit margins involved? - by ThisIsTheStuff
I'm relatively new to B2B sales, coming from a background in promotions, and I'm trying to sell a multi-surface cleaner (wood, glass, leather, marble, metal, upholstry, carpet) to various hardware stores. However, I'm a little unsure what to focus on as far as the main selling point of the product, being I've never sold a product before, only a service. What do most business owners pay more attention to? the merits of a superior product? or the profit margins involved?

What sells the most is paramount to anything else.

If something is popular and draws customers, the profit on that one item is irrelevant. Look at the advertising dollars being saved and still people come in to view the other higher marked items as well.

Profit is usually the decision of the store owner and the wholesaler usually doesn't care. This is why buying something in a boutique can be expensive compared to walking into a Big Box store and getting the same thing for 30% less. So, you really don't have control over profit.

Also, there is what's called a "loss leader." Owners purposely drop the price of certain items just to get people in the door.

As far as the merits of a superior product is concerned, that's not necessarily a draw either.

The video cassette with the Betamax format was considered far superior to VHS. Yet, the aggressive promotions and advertising by VHS coupled with the licensing fees Sony charged for Beta, forced Beta out of competition.

Another example are the video game consoles, Sega Master Systems and Nintendo Entertainment Systems. Sega was considered far superior in graphics.

As a store owner, I want to know if you have something that sells. Will your item justify the space I give it in my store?

That's the focus: foot traffic. - by John Voris
Weekly Updates!
Questions and Answers about Selling
Subscribe to our mailing list to get threads and posts sent to your email address weekly - Free of Charge.