The Sales Japan Series

Auteur(s): Dr. Greg Story
  • Résumé

  • 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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Épisodes
  • 413 Networking Done Very Badly. A Real-Life Lesson From Tokyo
    Nov 26 2024
    I received this note following my attendance at a networking event run by one of the foreign Chambers of Commerce here in Tokyo. “Dear Greg Story , I hope this message finds you well. It was a pleasure meeting you, and I truly enjoyed our conversation and the valuable insights you shared. Please feel free to reach out if there is anything I can assist you with. I would be delighted to stay connected and explore potential opportunities for collaboration. Thank you again for your time, and I look forward to speaking with you in the future. Best regards,”. Frankly, I was shocked to get this note. It was from a Japanese businessman, so bravo on the quality of the English. It was sent that same afternoon, so well done on the cadence. My shock was induced by the fact that we didn’t have anything even faintly resembling an insightful conversation. Our conversation, such as it was, can be recorded as relatively brief. This note, upon receipt, came across as a “canned” response which felt as if he probably sends this out to every man and his dog, so totally non-tailored or personalised and therefore a comprehensive fail. He was in the property management field, he told me, and he made no effort to filter me to see if I was a prospect who could become a client. Yet he bothered to send me this note. What was the point? Honestly, when we are networking, we need to do much better than this. In my case, I only send follow-up notes to people who are high possibility prospects. How do I know that? I filter them during our conversation. I only need a few pieces of information to work out if there is any potential gold in this conversation for my business. Their meishi or business card is the first filter. What is their position inside the company? Are they a decision-maker who can buy my training? For me, the second filter is company size. If they are under thirty people, then the chances of us doing any in-house training delivery is slight. The modest numbers of staff make it hard to justify the expense. However, they could be a candidate for sending even just one person to our public classes – a light and inexpensive option. If they have over thirty, then in-house delivery is a possibility. The next filter is, do they have any need? On the back of my card, I list the following information: “Soft skills” training, so that it is clear we are doing corporate training. I have these categories: Leadership, Sales, Presentations, Communication, DEI (Diversity, Equity and Inclusion) and Executive Coaching, all prominently displayed. On the spot, I go through these with the person I have just met explaining what we do. In a light-hearted manner, I then ask them if they need any of these? But I am deadly serious about trying to unearth any hints regarding what would help them grow their business. Some people flippantly say, “we need all of them”. That is okay, because I am not so easily deflected. I then push them for which one in particular would be the best for their people. I am trying to filter to see if there is a real need there or not. If there is, I will tell them I will get back to them after the meeting and mention “let’s get together”. I am conditioning them to have no surprise or resistance when my email turns up trying to set a time and date for our meeting. If my filters eliminate them as a potential client, then I am pleasant, but I move on and try and find someone who is a buyer. Some people say to me they find they get stuck at networking events and spend the whole time talking to one person because they don’t know how to break off the conversation and meet other people. Here is how I do it: “It has been a pleasure chatting with you. Why don’t we try to meet some other people while we are here? I look forward to catching up again in the future” and I shake their hand and simply walk away. For networking and follow-up, the process has to be well organised and congruent. There is no point sending a follow-up email to someone who is clearly not a prospect. There is no point sending a follow-up email unless you have already set it up that you will do so, rather than doing it out of blue like this gentleman did with his all weather template. I have used the example of my training company for the filters, but take your own industry sector and work out what you need to know to succeed in your business. What would be some relevant filters you can apply to strangers to know which basket to place them in? People who don’t make their living selling, hearing this brutal clarity, may feel this seems mercenary. Trust me, they have no idea they are alive. Sales is a rough and tough profession and a long way to the top if you want to rock and roll. Our most important tool is our time and how we use it. We cannot be dilettantes and swan around in a daze, like most people I meet at networking events. We have to be ...
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    12 min
  • 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 min
  • 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 min

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