The Sales Japan Series

By: Dr. Greg Story
  • Summary

  • The vast majority of salespeople are just pitching the features of their solutions and doing it the hard way. They are throwing mud up against the wall and hoping it will stick. Hope by the way is not much of a strategy. They do it this way because they are untrained. Even if their company won't invest in training for them, this podcast provides hundreds of episodes with information, insights and techniques all based on solid real world experience selling in Japan. Trying to work it out by yourself is possible but why take the slow and difficult route to sales success? Tap into the structure, methodologies, tips and techniques needed to be successful in sales in Japan. In addition to the podcast the best selling book Japan Sales Mastery and its Japanese translation Za Eigyo are also available as well.
    Copyright 2022
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Episodes
  • 412 Turning Rejections into Resilience: Dealing with ‘Dear John’ Letters from Japanese Buyers
    Nov 19 2024
    “Thank you for submitting your proposal for our capability development project. We appreciate the time and effort your team invested in preparing the proposal. After careful consideration, we have decided to proceed with another vendor whose proposal more closely aligns with our current needs and strategic direction. This decision was not easy, given the high quality of all the submissions we received.” I have stopped crying now, but this is the response I got from the buyer. Obviously, I have looked back on this deal and have tried to fathom what went wrong. They contacted us, so that means they were a hot prospect looking around for possible providers. I met with them face to face to ascertain what they wanted. This proved to be a little tricky because they were a bit vague on what they actually wanted. As is often the case with HR people, they are casting a broad net to see what they can drag in, because they themselves don’t have a lot of expertise regarding possible content. I duly took copious notes, suggested some things during that first meeting to see if there was any interest. There was interest, but looking back, I wonder now if that was only because they didn’t have a clear idea of what they wanted, so everything sounds good in that case. I didn’t just send them the proposal by email. I organised a second face-to-face meeting to walk them through the proposal, so I could gauge their body language and deal with any issues on the spot if they were unclear or uncertain about the contents. All textbook stuff. I left that meeting feeling like I had the winning formula for them, so I was devastated when I got this rejection. Was it the money? It could have been, because my pricing was 16% higher than what they spent with another company for the previous year’s training. I didn’t think that was outrageously different though, and I tried to assuage the price rise with loading on the value we provide. When the HR people see the training supply as a commodity, however, with no differentiation, then price becomes the easiest tool to wield. I could have just matched the price with what they paid the previous year, but if you believe in what you are doing, you have to defend the quality, the brand, and the differentiation you bring to the equation. It is a risk and in this case, it didn’t fly. Was it the content? This is hard to say because their needs were open and broad. They didn’t really have a clear picture of what they wanted, which was good and bad. Good, because it opened up a lot of possibilities and bad because it opened up too many possibilities. We all have our limitations as suppliers and our areas of strength. We tend to work within certain frameworks, because that is the content we are most familiar with and most confident in. It is always better to have a buyer who is very specific about what they want, and there is the downside that you don’t have it at all. That is okay, because that at least tells you why you failed to get this deal. It is that buyer vagary which is frustrating, because you could have made the deal but you are never really sure at the end as to why you didn’t. Was the chemistry not there with the buyers? I would say in this case I was too confident about the chemistry. I thought I did a good job in both meetings with connecting with the two HR representatives. One of the problems with chemistry, though, is that it isn’t a huge differentiator and it is easy for a rival to match you in this element. Salespeople, by definition, are good with people, good communicators and we are all the same in that regard. Maybe my successful rival was equally charming and engaging and what I was doing wasn’t a big enough differentiator to make a difference in the end. One thing which on reflection may have been a mistake is we spoke in English. We could have chosen either language, but one of them seemed to want to speak in English and the more junior person in Japanese. It may have been better for me to speak in Japanese with them. There were no communication issues with our conversation, but it may be a comfort factor which I could have paid more attention to. This was a multinational company so English is expected by people in their roles, but we are still in Japan. I don’t believe this was a deal breaker at all, but it is something to consider. The argument can both ways also that speaking in English with a multinational company emphasises your suitability for them over a pure Japanese domestic supplier. It is not definitive, but something I will pay more careful attention to going forward. Can I get a clear answer as to why the deal didn’t get done? Basically no. The buyers don’t want to get into justifying their decision for you. They have taken it and they have told you there were multiple options and they chose another one rather than you. In these cases, I just write back ...
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    12 mins
  • 411 The Limits of Opportunity Cost in Japan: A Sales Guide to Winning Reluctant Buyers
    Nov 12 2024

    n the West, we often emphasise that inaction doesn’t necessarily mean safety for the buyer, and there is a real cost to taking no action. We talk about the “opportunity cost” of doing nothing. A buyer’s competitors aren’t stagnant; they’re actively seeking new advantages with something better or more advanced. The market is never still either, as it’s always shifting, and companies need to be agile to keep pace. Economic conditions are equally unpredictable, with movements in currency, oil, gold, agribusiness etc., and other factors creating constant change.

    In this volatile environment, companies can’t afford to stand still. Innovation, adaptation, and flexibility are essential. Any opportunity to strengthen an offer relative to competitors must be seized and maximised. The ideal outcome is one where our offer can’t be easily compared to what salespeople know as the “Matrix from Hell.” This matrix, favoured by procurement departments, lists items to be purchased down the vertical axis and supplier names across the top on the horizontal axis. Prices are then compared, and the cheapest option is chosen.

    We don’t want our offer to fall into this pricing matrix. Instead, we aim to differentiate our offer so that it defies easy comparison. We need to add value beyond price alone. If our offer lacks the necessary depth, we need to think creatively about what we can provide to stand apart, avoiding price reductions or loss-leader tactics. Our goal is to create “apples to oranges” comparisons, making it impossible for price to be the only factor in the buying decision.

    As a result, we constantly highlight the downside of inaction to the buyer. In this VUCA world (volatile, uncertain, complex, ambiguous), how can any company feel confident doing things as they have always done them? The ground is shifting beneath our feet, and companies need to be capable of responding. As salespeople, we represent something new and different for the buyer, offering them a lifeline to navigate the daily VUCA challenges.

    Do Japanese buyers see it this way? Unfortunately, they don’t. Change in Japan is a double-edged sword. Intellectually, it’s acknowledged as necessary, but buyers instinctively resist it. They closely associate change with risk. Culturally, Japan emphasises group dynamics, partly to disperse any risk among all members, so no individual is held accountable if things go wrong. Japanese salespeople, for instance, prefer bonuses over individual commissions, as they feel more comfortable being rewarded as a group.

    Buyers share this perspective. They don’t want to be singled out over a purchasing decision. Collective agreement to change suppliers or add a new supplier feels much safer. The ringi seido system of collective decision-making perfectly suits this desire to spread accountability. By obtaining the seals or hanko of all key decision-makers on a proposal, the potential blame is shared if something goes wrong.

    A salesperson parachuting in with their shiny idea about the opportunity cost of doing nothing quickly finds themselves in a thorny position in Japan. No one here is likely to get fired for missing an opportunity. Buyers fear mistakes far more than they fear a lack of urgency. With no pressure to act, talk of “missing out” seems quaint. Here, doing nothing isn’t equated with loss; in fact, it’s often praised, as it avoids risk and keeps the enterprise safe.

    This cultural inertia partly explains Japan’s relatively small venture capital market, the lack of unicorns, and the many “zombie companies” that neither thrive nor disappear but manage to survive. Everyone involved seems determined to make no changes, ignore opportunity costs, and look away from change, hoping it will pass them by.

    If you’re passionate about motivating buyers to embrace change or realise the consequences of opportunity cost, be prepared to feel like you’re talking to yourself. Japanese buyers see no upside to making changes and plenty of downsides, so they tend to hold their ground. That doesn’t mean we shouldn’t try, but we should avoid making opportunity cost our primary “hail Mary” play to close the deal.

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    10 mins
  • 410 Why Sending Your Sales Proposal in Japan Is the Worst Mistake You Can Make
    Nov 5 2024

    One of the worst combos in sales is a virtual meeting online and the buyer says, “send me your proposal” or even more insane, you volunteer to send it. Even if you managed to sit down face-to-face with a buyer, do not under any circumstances finish up the meeting with this sentence, “I will send you my proposal”. Sale is hard enough as it is, so why do salespeople decide they are not living on the edge enough and make these types of ludicrous statements?

    We usually get one hour in the first meeting to go through the first part of the sales cycle: build rapport with small talk, get permission to ask questions, ask questions to understand 1. where they are now, 2. where they need to be, 3. why they aren’t there already and 4. what will it mean for this individual if it all goes swimmingly?

    This requires that as the salesperson, we shut up and let the buyer do most of the talking and that we take very good notes. One handy note taking technique is to divide the note page into four quarters representing these four questions and then write the answers in the corresponding quarter of the page. If you have missed something, it becomes immediately obvious, because there are few or no notes in that quarter.

    In our proposal, we will outline what we have understood is their need. We will then outline what we suggest is the best solution to deliver on this need and then explain what it will cost. Of course we never ever use words like “price”, “cost”, etc and instead we only refer to the “investment”.

    This sounds infinitely simple, but have we understood their need? Have they actually been totally forthcoming about the full gamut of their need? Are they holding back key information we need to know in order to provide the best solution for them? Why would they not share that critical information with us? We assume they want to buy something. Maybe they have a vague interest. We have managed to blag our way into a meeting with the buyer, but their motivation isn’t high. They may have a mild dose of curiosity or they may be a psychopath who loves to torture poor, unsuspecting salespeople.

    Salespeople generally have poor listening skills. They are often not really listening completely, because they hear one piece of the puzzle and their brain inflames with an internal conversation about the clever next thing they are going to say. At this point, they actually stop listening to the buyer. Or they may hear an objection and the brain goes into overdrive with what they are going to say to destroy that objection. They stop listening to all the other vitals hints from the buyer about what they need, in order to concentrate on their sparkling riposte.

    Consequently, what they regurgitate in the proposal may have missed the mark or more likely, missed key bits which the buyer needs to hear about in order to organise the Purchase Order. Given this likelihood, imagine what a disaster it is to send the document off and allow the buyer to sit there and silently think, “I am dealing with an idiot who has not understood fully what we need”.

    Here is Dr. Story’s iron discipline sales requirement. When wrapping up the meeting, grab your schedule and make them open theirs and find a date and time for the next meeting. In that meeting, you will bring the proposal and go through it with them to make sure you have correctly and fully understood their needs. Get into their diary right there and then, because trying to do it later can be difficult and sometimes it never happens at all.

    If they say, ‘just send it to me”, under no circumstances accept that statement. Instead, say “I will need to show you something, so let’s find a time for me to do that”. Do not dilute the power of what you have just said by adding to it with more justifications. Keep the strength of that bold statement intact, break eye contact, hold your pen at the ready, look down at your diary, and suggest dates and times.

    We want to be sitting right across from them when we go through the details to read their body language reaction to what we are outlining. We want to make sure we have properly understood their needs and that our solution is attractive to them. We want to tease out any doubts so that we can deal with these spiky porcupines on the spot.

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    10 mins

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