In the competitive landscape of B2B sales, many sales professionals face the challenge of being viewed as a mere commodity. In this context, the commodity trap occurs when a company's products or services are perceived as interchangeable with those of competitors. This situation can arise because you might be operating in a red ocean rather than a blue one (ref. "Blue Ocean Strategy" by W. Chan Kim and Renée Mauborgne). However, it’s important to recognize that it is also in the interests of your customers to make you feel like a commodity. By doing so, they increase their negotiating power to obtain better pricing and terms. I have personally experienced this at some point in the mobile, CDN, data center, and SaaS industries.
As painful as it may seem, this is where the fun of selling truly lies. It’s the perfect testbed to see the difference between an excellent and an average Sales Rep. The more you position yourself in the concept of a “blue ocean,” the better you can represent value and extract it. Remember that price should not be your only focus. You could sell your solution at a decent price from your perspective, but if the terms are unfavorable, the deal may ultimately be a poor one for your organization. Conversely, very good terms could help to offset any additional discount you might concede.
This also serves as a reminder to avoid conceding anything without asking for something in return. Be bold and creative with what you ask for in exchange.
The more technical your product or solution, the higher the risk that your discussions with your “natural” counterpart will become overly technical. This is the main pitfall. In the tech world—where my experience primarily lies—many conversations tend to revolve around technical aspects. Why? Because it’s a natural tendency for everyone, engineers and technical experts included, to showcase their knowledge and expertise. This tendency can lead to unproductive arguments, especially in fields like cyber security, where everyone may have their own “religion” regarding technology. Remember: your objective is not to be right, it is to respond to a need to win the deal.
If you seek advice and suggestions on “how to avoid the commodity trap,” you will likely find common answers such as:
Clearly define your unique value proposition
Focus on building relationships
Adopt a consultative selling approach
Educate your buyers
Highlight customer success stories
Continuously innovate
Personalize your approach
Create a compelling brand story
While these suggestions are valuable, some may be beyond your reach or control, and others may seem obvious without offering specific “how-to” guidance.
From my experience, the best way to extract yourself from this trap relies on two key points.
Open questions
First, keep seeking context and background by asking open questions (preferably using “who," "what," "where," "when," and "how”). This applies not only to you but also to the technical team that supports you in your deal. For example, when asked about the availability of a specific feature, inquire how this feature will benefit the customer and how it fits into their roadmap. The more complex the solution you are selling, the more your team of experts needs to be onboard with this approach.
Extend your network
Second, extend your network within your customer’s organization. Resist the natural tendency (and laziness) to always speak to the same people from the same department. Expanding your network will pay off, as you will gather more requirements and identify needs around which you can articulate your proposal. If your solution addresses a need that hasn’t been verbalized or recognized within the organization, it has no value. Emphasizing it becomes a waste of time if it does not solve an expressed need.
Get out of the corner
Will this be easy? Of course not. Where’s the fun if it were? Here’s why: your regular contact might insist that they are the only person you should communicate with, making it difficult to connect with other departments. Additionally, those departments may not understand why you’re reaching out to them. Even if you manage to secure a discussion, you might encounter jargon that leaves you feeling lost in translation. That’s okay. Remember what our totem is and why it matters. Excellent Reps thrive on being uncomfortable.
Eat it for breakfast
In summary, what is referred to as the “commodity trap” is the bread and butter of most salespeople. It is in your customer’s interest to make you feel like a commodity. Even with the emergence of AI tools, which are perceived as the new frontier of innovation, the concept of commoditization remains relevant.
Your best tools for paving your way toward success are open-ended questions and expanding your network of contacts within your customer’s organization.
Finally, let me share a piece of advice I’ve been given many times throughout my career: if this trap didn’t exist, you might not have a job. So, embrace the challenge and enjoy the ride that comes with it. This is where all the fun lies.