Insights from a another sales effort in China

The machine in question performs a very specific manufacturing process needed by the Chinese end-user. To confirm the machine's capability, we sent various size material samples from the end-user to our US client for processing on the machine before returning them to the end-user for evaluation; this is a big machine and we do not have one available here in China for demo purposes. All samples but the largest ones passed "integrity" testing by the end-user ... boy, I hatewhen that happens. Regardless of the failure to pass, the end-user wants to buy the machine but needs assurance they won't make a bad decision.

In this case, the "end-user" is the production department that will recommend and ultimately use the machine. Really, the end-user is a handful of people that have influence but not final say in the purchase decision. The final purchase decison is to be made by the "corporate decision committee" consisting of purchasing, finance, staff engineers, the usuals. The end-user is working closely with us to develop a "justification package" for presentation to the committee so they will say "yes". In sales, we often refer to this type of an end-user as a coach since they have a vested interest in buying our product and are trying to help us do the right things to make that happen.

Now back to our conference call with our client. We all agreed the main obstacle to sales closure was proving the machine's capbality with the largest size sample materials (too bad we didn't get it right the first time). We talked for a while when our client offered two "great" ideas for gaining the end-user's confidence and closing the sale:

• First Idea - Ship a machine, at no small expense, to the end-user's factory and allow them to htry it firsthand on their actual production line. Now tell me, who wouldn't go for that? We expect if they were to do this, the results would be good.

• Second Idea - Include a no-risk clause in the contract along the lines of "buy the machine and try it for several weeks and if it does not perform as required, we will take it back and refund your money no questions asked". Another excellent concept to which it would be hard to say "no", right?

Both good ideas but only one problem; this is China, not the US, and people think quite differently here! Consequently, we patiently (ok, not so patiently) allowed our client to finish putting forth his ideas before we told him why neither idea is likely to work in this case:

• First idea, try machine in factory - The end-user (production department) told us clearly that it would be a bad idea to send a machine to their plant for validation pursposes. Their fear is that the "corporate decision committe" members will wander over to see the machine in operation before a final decision is made. Obviously the Chinese end-user knows Chinese; the end-user knows it is highly likely one or more persons from the committee will point out deficiencies of the machine and raise other doubts some valid and many not. Why? Because this affords the "doubters" an opportunity to demostrate their "technical knowledge", "foresight", "intelligence", etc. The bottom line is that raising doubts is a way for them to gain face in front of their colleagues, something generally on the to-do list of all Chinese, as well as have a little insurance in case they support a "buy decision" and later there really is a problem. With doubts on the table, the end-user would have to prove the doubts away and also risk losing face in the event "that problem" arises. Are you following me? Yeah, I know it is complicated.

• Second idea, the 'ole no-risk clause - We did not have to talk to the end-user on this one as we know it will not work. Chinese are skeptical of promises from foreigners and, though slowly changing, put little faith in contracts. Chinese follow the motto of people from Missouri which is simply "show me". It is almost a given Chinese will not buy a machine on faith, especially one that failed to produce 100% acceptable samples. They want tangible proof their purchase will meet performance promises and they will hold money until they are satisified it does. Scam experts themselves, the Chinese expect to be scammed and so to them words on paper can never replace tangible evidence. This is especially true for the words of a "foreign devil" (now I am exaggerating).

The result for this case? We believe the largest samples failed for small technical reasons, ones that can be adjusted away. Essentially, we confirmed our US client's confidence in achieving good results with more samples during a second go-round. So our current plan is to send additional samples to our client for processing but not without first ensuring everything is just right and gosh, we hope it works!