Where software development meets entrepreneurship Software dev + entrepreneurship

Episode 5: Why B2B > B2C

2019-07-27 | 11 minutes | DEVpreneur podcast

Charlie and Tom discuss why you should build a product for businesses (vs consumers) as a default.

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Transcript:

Charlie
Tom

Alright, we're back, the DEVpreneur. Today we're going to talk about why you should go B2B - business to business - vs business to consumer as a default. Why selling to a business is better. I'm here with Tom, we're in Toronto again.

Hi!

And we're gonna just chat about why we think it is better to sell to a business. So first and foremost, the money I think.

The moolah is there.

Ya, if you're selling to a business, you're helping them solve a problem that they presumably get paid for, or at least have money to pay for. Whereas if you're selling to a consumer, not only are they going to be a little pickier potentially - because a lot of consumer products are at such large scale that they are very polished - but they also just have less money to spend on products.

Ya.

If you look at something like Gmail: amazing product, totally free. So if there are enough of those products consumers get used to not having to pay.

Right. I think another interesting thing too is the difference between a logical purchase and an emotional one.

That is a good point. I feel like consumers are a lot more emotional.

Ya, so, think e-commerce and stuff like that. It's a lot harder to convince them to buy a t-shirt, or whatever. Right?

Ya.

Whereas, if it's a business, it's kind of binary for them. It's like, will a solution save me $200 and cost me $100, so I come out on top?


Episode continues... listen above to hear more!