Great idea but still struggling with execution

by Spinalpirate. Posted on Sep 16, 2020    0    9


I have a project that allows scaling, solve a problem and is design for B-to-B channel. But I'm still struggling with some things in my business plan.

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  • How to reach HR directors of midsized companies ? Should I cold call and ask to speak to have an appointment ? Or send them a flyer or a request throught paper mail.
  • What mark-up should I apply on the product I am selling ? Since I am not forecasting the future cost of scaling what would be a safe marging of markup ?
  • There is one competitor, which is huge, but who is barely making any efforts to grow in my country, basically so far they rely on their investors to bankroll them, and I can't compete on pure price, should I ever mention it if I am pitching to investors ?

Comments

AnonJian

Well, it's not like execution is everything ... oh damn.

>How to reach HR directors of midsized companies ?

Reach as different from spam? White paper marketing. It's not as if content marketing wiped the white ... paper out of existence ... oh damn.

>What mark-up should I apply on the product I am selling ?

It's not like you didn't say in enough detail ... oh damn you didn't.

>I can't compete on pure price, should I ever mention it if I am pitching to investors ?

Sure. Or no maybe ... what the hell does "it" refer to? If you don't mention competition exists you look foolish, if you say out loud you're going to rake the investor's money into a pile then set it on fire, that's not good. Why you're asking this AND the question on mark-up on zero information I do not know.

What would you have people trying to help you do? Pick a number between one and ten thousand? Is paying the customers to take this off your hands really out-of-the-question, I'm just trying to get all the options out there.

Good thing communications skill doesn't play a part or you'd be scr ... oh damn.

Somehow I just don't think you will have to worry about investors at all. Glass half full, the pressure is off. Oh damn. Maybe you should ask investors who can speak in your primary language because you ain't gettin the job done.

TIL Pricing has ZERO role in scaling ... solutions ... apparently. Now where the hell is THAT project? I sense a pending oh damn.

  Spinalpirate 1

You're on point, but I voluntarily omit a lot of details since there is no NDA whatsoever.

About pricing tho.

Let's say the product I am selling is 100$ on retail. With pooling my clients needs I can lower the price to 80$. If I mark-up to 100$ it will be at retail price so on the pure financial perspective no interest from the client. But what if a client prefers not to manage all the vetting, contracting and ready to pay 125$ ? Or just have no idea of the retail price ? My bottom price should at least give me a 5-10% net profit, but how much greedy is too greedy.

AnonJian

This is a difficult question to answer. Is EVERY product of this type an AVERAGE of $100?

If you mark-up an eighty dollar product one hundred dollars then the price is one-hundred-eighty or $180. The dollar sign goes first. It's difficult to answer because I am not sure if you are a stranger to money in addition to terms like retail mark up -- which is generally A Percentage.

>My bottom price should at least give me a 5-10% net profit, but how much greedy is too greedy.

Given you do not in any way disclose base price, the question is how obtuse is just fucking not getting the point? Given you probably don't know base price is arrived at through some form of math, please don't answer.

Get thee to a search engine. Annoy the fuck out of an algorithm.

>I voluntarily omit a lot of details since there is no NDA whatsoever.

For fucking retail business math? For God Damn pricing? You are not disclosing anything. You're just explaining the reason you are not worth communicating with.

  Spinalpirate 1

Thank you for taking your time, have a nice day too !

warning_globe 2

Product demos

MaxPast 2

B2B sales are about networking: start with Linkedin, build relationships and trust.
Start with not trying to sell anything but rather learn more about your prospective customers.
Look for advice from seasoned b2b sales people - there is no need to reinvent the wheel here.
The same applies to pricing: it really depends on the situation in your niche.

As for the competitor who isn't active in your country, there may be a reason for that.
Try to dig deeper: maybe your country isn't that attractive from financial perspective?
I've personally been there and I must say that starting with the wrong market was one of the dumbest mistakes of the past.

  Spinalpirate 1

Thank you for the feedback.

The main reason the competitor isn't pushing more is that it relies mostly on a platform to connect to local businesses in NA, but in the industry I am targeting here, most of the local businesses are brick and mortar with very few tech. So you can't really connect to salesforce or create any API. Also they are targeting way bigger clients than I am looking too, as apparently their client threshold is minimum 500.

And tbh I'd rather contract with 20 companies of 100 employees than with a single one of 2000. Which is the opposite of their growth strategy.

MaxPast 2

I'm asking a different question here: are you sure that going local is a good business decision?
What if you try to target the global market from the very beginning?
The cost of mistake is costly, you know :)

I will also not try to overthink competitors' strategies but try to find answers in some reliable way.
We make our hardest mistakes when we are absolutely sure about having the right answer based on facts we know. Our subconsciousness doesn't warn us that the decision may be wrong based on unknown unknowns. So, if you want to come up with the right answer, you should look for such unknown unknowns first. Something like: "What may be the facts other than what I know that forced our competitor to act this way?" Then try to check if these facts are true or not.

  Spinalpirate 1

Well, tbh, I am not trying to reach global market, because I have no interest solving a global problem or making money in itself, I am interested in solving a problem in terms of productivity and employee health that I know is going on in my region and in France in general.

And I know there is other channels of growth that will open up, both in B2B and B2C, in case I wanna expand nationally or in the country closest to mine.

Whereas the competitor has a product solving the same problem, it's design seems to align more to selling the means of the solution, than the solution itself, I am not sure that I am making myself clear.