People Innovation Excellence

B2B Transaction: Three Big Players in Bargaining Game

To create estimable result, knowing your customer is very fundamental step before getting in touch and talking about the business transaction. Starting from the curiosity and personal challenge, I decide to do an investigation upon the consumer behavior in B2B market based on the case on my previous company.

Along the way to obtain the data, at last I classified three big segments who playing the game in B2B transaction; they are Game Maker, Game Player, and Challenger. It very important for you to pay attention if you are want to win their heart.  

Game maker refers to individuals who come from procurement department in big companies where they already set a mature system in procurement transaction. This system allows them to dominating the transaction, thus the opponent would have less bargain power.

For example in term of contract. They already create terms and regulations for suppliers who want to take control of project. Usually in term of payment. Suppliers have to agree if company would pay in credit because they should finish some administration to withdraw the funds.  

There is no other way than comply the regulations if they want to join the game. Is it bad? Not necessarily that way. In supplier’s side it could give advantages such as increase their credibility and getting contract where they will get fixed payment for some time rather than always waiting for uncertain order from consumers.

Game players are playing differently. They are coming from small medium enterprise, startup, or young entrepreneur. With the spirit to sustain their business, the bargain power mostly depend on their negotiating skills. They do not have a rigid rules to obtain their needs.

Sometimes game player could win the situation, but in other way they could not do much thing when seller open the number. Mostly it happens because they haven’t have much data and a big name like the big companies. Individuals who playing in this field mostly are person who are having interest to create opportunity to boost their career and business.

Challenger are very spirit full and young, they are coming from procurement department within student organization where the needs are not too big. They are only buying some stuffs depends on organization agenda.

Because the capital is very limited, they tends to be selective and protective in deciding their vendor. Exactly like challenger in a game, the winner of the game is somehow difficult. Supplier might be kind of them thus they could win the bargaining. But in the other case they are very reckless and less research thus leads them to have lower bargaining.

So, which area do you wanna play?(ER)

Published at :
Written By
Eva Rahayu
Former Student of International Business Management of Bina Nusantara University | Bina Nusantara University
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