Discover the 4 most effective types of sales on the market – WAU

The most frequent types of sales on the market are direct sales, consigned sales, consultative sales and corporate sales. Each of these modalities of selling goods and services is aimed at a specific business model and audience. Understand each one now!

Trade is a practice that has its beginnings in antiquity, but like Marketing, it only gained the study and documentation it deserved in the last decades. Today, several types of sales take place in the market and a good part of the businesses bet on the four most widespread models.

Direct and payroll sales are focused on the final costumer, although they can be applied in many different ways. On the other hand, consultative and corporate sales are indicated for the commercialization of services between companies, which generally requires longer and more complex sales arrangements.

In this article we present these four types of sales in detail, analyzing their main practices and developments. Continue with us to check it out!

1. Direct sales

Direct selling is the classic marketing model based on direct contact between sellers and consumers. The main difference of this modality in relation to other types of sales is that the negotiation does not happen and is not linked to a commercial establishment.

Several direct selling companies provide an opportunity for people of different profiles to obtain an alternative income that imposes very few demands on their salespeople.

The flexibility of working hours and activities are also attractive, allowing the dealer to dedicate himself to another profession in his spare time or to take care of his household chores, for example.

The consumer is also favored for having a close and personalized service that does not compare to traditional retail. There are companies selling the most different types of products – from exclusive drinks and food to various clothing and cosmetics.

The types of direct sales

Direct selling can be practiced in different ways, the main ones being:

  • door to door: when the seller travels to his customers’ home or workplace to display his products and sell them;
  • catalog: in this case, the seller leaves a catalog or magazine with images and descriptions of the products in the hands of the customer, who subsequently contacts or returns the material informing the items he wishes to buy;
  • events: in this type of direct sale, the seller promotes an event – which can be just a meeting of friends or a big festivity – to gather people and offer their products.

Direct selling systems

Direct sales can also be classified by different levels of collaboration:

  • monolevel system: in this case, the seller acts autonomously, that is, he buys the products and resells them with a profit margin;
  • multi-level marketing: this modality is commonly managed by large companies and, in it, the seller not only profits from the sale of the products, but can also receive commissions on the sales made by indicated sellers.

2. Consigned sales

Consigned sales are one of the types of sales most adopted by retailers and distributors. It works as follows: the supplier establishes a partnership with a commercial establishment that takes over the sales of the goods and is exempt from the responsibility of paying for what is not sold.

Companies with a structure of stock and very lean marketing can benefit from consolidated points of sale from other companies. As the supplier, in this case, assumes the risk of not selling the goods and bearing the costs of any returns, the consigned seller has a safe opportunity to bill on the product.

The partnership can also be carried out between individuals and companies, under the same conditions. In this case, however, a seller assumes the sales of the product – which can be carried out directly or by other means – and returns to the supplier what he is unable to sell within a previously agreed period.

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3. Consultative sales

Essentially, consultative sales suggest a closer relationship between salesperson and customer. Aligning his proposals with the expectations of the consumer, the seller is able to create a relationship that favors sales and loyalty.

The concept of consultative selling gained prominence with Mack Hanan’s work, “Consultative Selling”, launched in the 1970s. According to the techniques described in the book, salespeople need to position themselves as specialists in what they sell.

The posture in consultative selling

A consultant needs study and training to be able to provide relevant guidance in his area of ​​expertise. This is an important point of consultative selling that, in a practical context, differs from an ordinary sale due to the attitude adopted by the seller.

Like a doctor who is informed about the patient’s symptoms and then offers guidance and prescribes medications, the job of a consultant is to carry out a technical diagnosis on his possible client, clarify his problems and, finally, offer the solution he needs.

The customer profile in consultative selling

Consultants are very common in the B2B market, that is, companies selling products and services to other companies. As the purchase process of many companies is generally more rigorous and has several responsible people involved, it is desirable for a prepared person to deal with these negotiations.

However, consultative selling is not restricted to this modality. The sale of complex products or with a high acquisition cost to final consumers, for example, may require specialized consultants to ensure a good clarification and increase the credibility of the merchandise to the public.

4. Corporate sales

Corporate selling deserves special attention. It is a type of sale that differs greatly from all the other models we have mentioned, starting with the characters involved in the negotiation. When we talk about corporate sales we are dealing exclusively with B2B sales.

In this case, therefore, the sale must be predominantly based on rational arguments, although emotions can be worked on in some stages of the process. The seller needs to be aware that no company will hire his product before combing his business and proposals.

The corporate selling process

When we talk about corporate sales in general, we are dealing with the provision of important services, long-term contracts, significant transactions and other negotiations that require a much more complex sales process.

When sales are made in person, presentations and executive meetings are essential, but there is also the possibility to develop the entire sales process within the company (Inside Sales). In this case, the operation is entirely optimized, as the proposals and negotiations are carried out exclusively by telephone and internet.

This work depends on a sales team integrated with a Marketing team. The idea is to create a long-term relationship with the public and lead them to the closing of the deal. Inbound Marketing is a great example of a very effective strategy in this type of sale.

The customer profile in corporate sales

Focusing on product or service attributes is not the right way when dealing with customers interested in solutions for your company. Managers and directors need to deliver results, so what they are really looking for is evidence that their product will really be able to benefit the business.

In addition to the extensive process of discovery, relationship and conversion, corporate selling can also require lengthy negotiations and involve several different people such as partners, financial and legal representatives, chief operating officers and others.

The ideal, therefore, is for the salesperson assigned to deal with these people to act as a consultant, that is, to present himself as an expert in the service he delivers and to be equipped with data that attests to his arguments and successful cases of important clients who serve reference for the promised results.

Bonus: tied sales

Another very common type of sale that we needed to highlight in this article are the famous matched sales. In this type of commercialization, the sale of a good or service is conditioned to the contracting or purchase of other items that do not interest the consumer, but must be acquired to make the purchase feasible.

Meantime, unlike all other types of sales presented throughout the article, tying is a crime! This practice has been considered abusive by the Consumer Protection Code since 1990 (Art. 39), however, there is still a lot of misinformation on the subject among Advertising professionals, salespeople and, mainly, consumers.

Minimum consumption in bars, restaurants and nightclubs, contracting credit under the insurance services requirement, buying tickets with unclear fees and even banning entry to cinemas with food from other establishments: all these attitudes are illegal.

Remember that to be successful it is not enough to know different types of sales. In addition to keeping an eye on the country’s laws, respecting regulations and respecting good market practices, it is essential to have a trained sales team, invest in periodic training and recruit the best talents for your team.

This article ends here, but we still have a lot of knowledge to leverage your business. Continue on our blog and find out now how to interview and hire the best seller!