Is Your Company Seen as a General Supplier…or a Generative Supplier?

A general supplier that comes calling is one perceived by markets to be uninteresting and irritating, for the simple reason that the products and services they offer are already being provided by incumbent suppliers. It’s like being married and constantly having members of the opposite sex approach you for a ‘good time’, and I ought to know because this happens to me every day. Quite annoying, believe me, and I hate all the cloak and dagger stuff that goes with it, especially the part involving a dagger.

General suppliers provide a service that keep businesses ‘going’, that and no more. What they sell goes under the category of ‘overheads’ to markets…which is why they are always being pressed for lower prices. And to make matters worse more than 50 industry sectors are converging upon markets, with thousands of companies within each sector…and more than 90% fit the general supplier profile! Additionally, general suppliers appear to attack the status quo and so their aim is seen to be intrusive, resulting in a perception that they are unnecessary, distracting and therefore unwelcome visitors.

Generative suppliers on the other hand provide a service that keep businesses ‘growing’. What they sell goes under the category of ‘opportunities’ to markets – all of which are presented as ‘net gains’. This uncommon form of competitor never attacks the status quo, in fact they do the opposite: they make clear their intentions not to offer duplication, but to provide ideas to stimulate business development…with a promise that the ideas need only be paid for when put to use. These projective thinking, non -threatening suppliers are always welcomed by the market. There appear to be very few of these special suppliers, however the truth is that many of the general suppliers could join this elite group if only they would change their manner of approach to markets, and their conduct within markets.

I should add one more important point to the way generative suppliers do business, especially when contacting prime prospects. They definitely do want to win as much of the incumbent ‘general’ supply role as they can, but this is always a secondary aim to the goal of initiating new business. Their plan is to attack from the inside, not the outside. In other words once they establish a foothold through their sale of net gain ideas, they are in a better position to vie for ‘general’ business supply. Very professional, very smart and very acceptable conduct to markets.

If there is a simple lesson here it is this:

“Ideas make money, products cost money!”

A case study I am currently consulting for a company that has many business branches, all of which are charged with the task of winning new customers and retaining established customers. I have interviewed several branch managers and even the best among them are operating as general suppliers. The worst among them go to market as extremely general suppliers. No one wants to be perceived as a general supplier of course, and nor does anyone mean to operate in this manner. This behaviour surfaces because sales people have not been briefed on the terrain they intend to enter. Fighter pilots are always fully briefed before missions but sales people are not Little wonder then that so many ‘reps’ are shot down so easily, or crash soon after take off.

The branch managers I mentioned have now been fully briefed on the markets they must enter and influence, plus they have been armed with very professional consulting tools. Here is how they go to market now…

• They call prospects and start by asking if he or she already has satisfactory relationships with suppliers, in their area of service. The answer of course is almost always ‘Yes’, and so they continue by saying that they thought this to be the case, going on to spell out that their wish to arrange a meeting is not to challenge the incumbent suppliers. They then continue by explaining that their company offers a service that generates ideas to help develop business in areas that mean the most to him or her right now, and that the ideas do not incur costs unless put into use. They then suggest a meeting time and, because there is no threat but there is the promise of positive action at no cost, they win lots of interviews • At time of interview, they start by restating their purpose of providing ideas rather than threats, and then briefly point out the areas in which they can generate ideas (all of which they know will be of interest to the prospect). They then seek permission to ask just a few questions, which will accomplish two aims: a) to understand the history, current situation and future priorities of the prospect’s company, and b) to appreciate the prospect’s broad and specific experience with suppliers of the service being discussed. There is insufficient space here to list the type of questions to be asked, suffice to say that all of the questions are of the ‘expensive’ variety, which means they have taken serious thought and effort to construct. The net result of asking these expensive questions is that the sales person comes to clearly understand ‘the prime business development needs’ of the prospect, along with an appreciation of his relationships with incumbent suppliers…and his/her thoughts about the supplying industry as a service provider. All of the responses gained show the way forward • Armed with a degree of empathy, they then focus on the key business development areas where ideas need to be generated, gaining agreement on areas that matter most…followed by a promise to return soon with ideas, as promised • The return visit briefly goes back over the key business needs, and then the ideas are presented…with conviction but not with finality, so that the prospect can offer suggestions based on his/her experience and expertise. This will often lead to a new project being agreed…and thus the process of ‘supplying’ in a generative manner begins Needless to say perhaps, the supply process must then be managed very well, otherwise the seduction phase leading to the production phase was wasted!

Summary…If your company is capable of conducting itself as generative supplier, then the ‘rules’ of approach, engagement and leadership must also apply to doing business with established customers. If you don’t employ such conduct, your competitors might…so be careful. In fact the goal with customers where more potential exists must be ‘to develop’ rather than ‘to retain’. The aim of ‘development’ almost always leads to retention, while the lame aim of ‘retention’ often leads to an opening for generative, developing suppliers.

Finally, if you have a capacity and an aspiration to be so ‘different’ as to project the profile of a generative supplier…then please consider the critical need to be completely different in your approach work and sales conduct.



Is Your Company Seen as a General Supplier…or a Generative Supplier? - To learn more about this author, visit John Lees's Website.

Like this article? Share it with your friends

E-Mail | Print | More

Related Articles
Is Your Company Seen as a General Supplier…or a Generative Supplier?
	This is a critical question to confront, especially if your business is intent on winning new customers… and retaining good customers
If only customers and prospects went to ‘buying school’
	“Why is it that customers and prospects rarely if ever complain to companies about the unprofessional, unbusinesslike, unproductive behaviour of their sales people…?”
How to Get Prospects To Use You Instead of Their Existing Supplier
	One of the most common objections salespeople get is that their prospect is already using someone else thank you. As this objection comes up over and over again, it needs to be handled. Here's how.
How do you get to see a prospect who doesn’t want to see you?
	If you don't get face to face with your prospect you probably won't convert him. This article will give you a few hints that may give you the edge over your competitors.
BE INTERESTED, NOT INTERESTING
	How to overcome the competition.

---

Related Forum Posts
	How to valuate a business
	$3000 Grant Available
	For franchisor, which is the most important quality of good
	Partner with them
	Business magazines
	Decide your market first
	Famous Entrepreneur Schedule
	Re: For franchisor, which is the most important quality of g