B2B vs B2C potential...

[Starsky]

Been contemplating this for a while, which business model has the most or best potential to flourish- taking into account the current economy?

B2b= Business to Business
B2C= Business to customer

Im looking forward to reading the responses from the group

 

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[Imon32red]

Why not do both. I have products that I sell wholesale to businesses. I also retail the same products online at retail prices.

 

[Vigilante]

Both. Control the secondary (resale/wholesale) market, and establish the market price and branding with the direct to consumer market.

 

[MJ DeMarco]

I'm preferential to B2B as IMO business owners and decision-makers tend to be "looser" with their money than consumers. I'll spend money if I think it will improve my business in some fashion. IMO, consumers are more cheap with their dollars and require more coaxing and more marketing.

Additionally, ONE SALE to a business could mean thousands of unit sales (think wholesale, distribution, corporate sales) versus ONE SALE to a consumer, is well, one sale.

 

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[Vigilante]

I disagree with the boss. Margins on B2C are significantly greater, providing a greater ROI on startup enabling a more gradual ramp-up that is less capital intensive. If you can cash flow the wholesale aspects, than take both. If you can't initially, than starting B2C allows you to establish a market position which enables wholesale deals to find you. My latest project started B2C, and now has developed into both wholesale and government channels. There might not be a "right" answer to your question... but a worthwhile Fastlane question none the less!

 

[healthstatus]

B2B usually has fewer Customer Support issues. If you have a complex product consider that.

 

[DealMaker]

I see a lot of benefits with B2B that have already been pointed out (companies are looser with their money, multiple units instead of just one sale, not an emotional decision, etc.), but the biggest downside I see for someone trying to scale with limited capital is being able to bankroll your venture. Many businesses prefer to pay on terms, so if you're starting with minimal money, that could be a huge problem. Consumers are used to paying right away.

 

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[Pete799p]

One of the other issues with B2B is getting your product infront of the deal makers. Unlike traditional marketing to retail customers B2B requires a different approach especially with larger companies. It can be difficult at times to talk to the person who will buy your product.

 

[Robre]

Nice to see it took over three years to get a response lol.

 

[bell12]

hmm, What if your targeting a customer who is the business. is it considered B2B or B2C or both? haha basically, in my scenario my plan is to cut out the whole saler/distributor, where businesses buy my product because it will be asy for my clients to order and i know they use alot of this certain product. Only downside is they would have to wait one day for shipping, but they will be saving a significant amount of money by dealing with me direct...

 

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[InMotion]

Nice to see it took over three years to get a response lol.

Better late than never lol.

Additionally, ONE SALE to a business could mean thousands of unit sales (think wholesale, distribution, corporate sales) versus ONE SALE to a consumer, is well, one sale.

This is a great point. What are some of the differences in approaches? It seems that in B2B you need to be the acting manufacturer or you may get cut out of the deal, but not so in B2C. Anyone selling to wholesalers care to comment?

 

[MJ DeMarco]

Nice to see it took over three years to get a response lol.

OMG I didn't even notice. =)

 

[Starsky]

LOL wow, I see I posted this in 08 ha ha.. Good info in the responses so far

 

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[mmtprofile]

What are the businesses you are contemplating?

Who do you want to work with? -- As in what demographic.

 

[Kak]

I mostly focus on b2b but I wont leave money on the table with a single customer either. Since I'm in the energy business I often help businesses and then the owners residences. Its a win, win. I usually just undercut what they are paying by 10-15 percent and keep the rest. Its fun to land big b2b customers but I suck at prospecting.

There are some big a$$ energy using companies out there that could be worth hundreds of thousands per month. I just need to get in touch with the right people.

 

[nuwav]

I had most success with B2b, they are more than likely to give you money if you have something of value to offer. but if you can its good to cater to both B2b and B2c

 

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