Article at a glance:
Is the soap you buy really different from the competition? Probably not, though consumer goods companies know how to differentiate their products by building strong brands. By contrast, companies that sell things such as bulk chemicals and steel to businesses, burdened by the notion that these goods are commodities, churn out more and more product more and more cheaply and then sell as much as possible at the market price. Yet in many B2B markets, nonprice factors might be responsible for as much as two-thirds of a customer's buying decision.
The take-away
The B2B market has no true commodities—customers always value servicelike features, such as delivery speeds, consulting services, maintenance, and conditions of sale. It is fairly easy for companies to determine which of these features their customers would pay for.