381 The Two-Step Process When Selling In Japan

Getting a deal done in a single meeting is an extremely rare event in Japan.  Usually, the people we are talking to are not the final decision-makers and so they cannot give us a definite promise to buy our solution.  The exception would be firms run by the dictator owner/leader who controls everything and can make a decision on the spot.  Even in these cases, they usually want to get their people involved to some extent, so there is always going to be some due diligence required.  In most cases, the actual sale may come on the second or even third meeting.  Risk aversion is a big thing is Japan, so everyone is very careful to make sure their decision is the right one and that there will be no blow back on them, if things go bad.

I met the owner of a very successful accounting business at a networking event.  It was a very crowded affair and as is my want, I will just shanghai strangers and introduce myself. “Hi, my name is Greg” as I extend my hand to shake theirs, followed in short order by my reaching for my business card. 

I followed up to set up a meeting, which we had, and it went quite well.  He invited me back to meet his team.  The people I met were quite well established in the company and focused on the administrative side of things.  He was obviously thinking about the training arrangements and logistics and that is why he wanted me to explain what we will do to these two staff members.  He was the decision maker, but we still had to involve other members of the team to get the internal buy-in.  We had a third meeting with just him and I, to sort out the final arrangement and set dates, etc.

In another case, I met an insurance company representative at an event and followed up for a meeting.  He directed me to one of the staff who takes care of HR and I had an initial meeting to uncover their needs.  Following that discovery meeting, we had a second meeting where I presented our options to solve their issue.  There was a competition with other suppliers of training to see who they would choose.  We then had a third meeting, and he brought a colleague from their department and I explained what we do and what we do for them in that meeting.  Again, the decision had been taken as we had won the competition and now he was harmonising the next stages internally, to get it to become a reality.

Because the steps are elongated, I often don’t even bother to bring any Flyers with me to the first meeting and spend the whole time trying to best understand their needs and wants.  This way, the full hour of time usually allocated can help me clearly ascertain if we have what they need or not.  It is always a good idea to set up the next meeting at the end of the first meeting, because everyone in Tokyo is so busy you need to get into their schedules fast. Once I have done that, I bring the materials to the second meeting to support my recommendation and we go through them together.  It is not uncommon to have to come back a third time and go through specific elements once more, to help them gain a clearer understanding of the contents and its suitability for their situation.

Once you understand the cadence of doing business here, you are not getting exercised by how slow the process is or by trying to cram everything into one meeting and driving for a “yes” decision.  That is very unlikely, and we need to be thinking in terms of three meetings rather than one.  If we can get it done in two, then magic, but don’t expect that to happen.

Risk aversion and team decision-making ensure that things will move slowly.  No one is in a hurry to buy anything we have to offer and we have to keep that thought firmly in the front of our minds.  No one gets fired for being overly cautious in Japan and risk taking is not well regarded as a concept.  Patience and a full pipeline are the requirements for doing business here.  If you are desperate, then you will have a rocky time because no one is on your timeline and frankly, they don’t care.  We have to adjust ourselves to the way they do business, and trying to reverse the natural order of things here is a fool’s mission.  “Ride the wave in Japan” is always the best advice.