5 Useful Lessons When Selling European-Made Equipment in Kenya

In the year 2017 against a backdrop of odds, I managed to help a German manufacturing client of mine based begin sales in Kenya. This was approximately 15 months from when the client first decided to work in Kenya.

My initial timeline to the client for the first sale was between 12 months and 18 months and indeed this 15 month timeline was right in the middle of that.

While achieving that, it is worth to note that this year Kenya held its most complicated elections. These elections slowed business growth across the country in a major way and very few companies were investing in new equipment.

In the process of selling the equipment I learned a number of lessons. This article is part of an Executive Training Series in which I share these lessons and also help companies plan to sell in Kenya in the year 2018 and beyond. The other parts of the series include a free PDF which you can download on this page and a Risk Free Virtual Training. I know this series will add significantly to your bottom line in Africa as I share first hand information on my experience which will be useful to you.

I learned more than 12 very valuable lessons but for this article I have chosen to cover 5 of those lessons. The remaining can be found in the free PDF download for your reading and future reference. No opt-in is required to download the PDF.

  1. How a Demo Unit Helps

One of the biggest reasons customers do not buy equipment is because they do not know how the equipment works and if it is easy to use. My client sent a demo lab unit to Kenya for conducting tests. This unit was also on sale for a discounted price. Our customers tested this unit and the results were superior to what they usually got with their current machines. 

I therefore recommend having a demo unit in Kenya. This unit can be a small lab or research machine. It can be your smallest range and should be located in a venue close to where majority of your customers are. It is very essentially that you establish you can trust the agent you are sending the unit to. And also that they will not sell your unit without your knowledge

  1. How Political Events Shape Sales in Africa

Unlike most parts of the Western world Elections and referendums in Africa have a major impact on African businesses. The main reason for this is political contests are heavily contested as political offices especially nationally have a lot of power. This leads to uncertainty in knowing how future policies will affect businesses. Customers therefore tend to wait until the election contests are over before they commit to new investments. This also creates pent up demand for new equipment in the period following major electoral contests. In Kenya, following this year's election, an investment boom is expected in 2018-2021 as happened in 1993, 1998-1999, 2003-2005, 2008-2010, 2013-2015 after the presidential context of the prior year.

  1. A Yes, is not always a Yes until you Receive your Payments

In most African cultures, it is rude to say no outright at the beginning of meeting with someone. Therefore you will encounter multiple clients who seem very interested and enthusiastic from the day you meet them. They will ask for quotations and even get to the point of requesting for Proforma invoices. This should not be taken to mean they will buy. One of the best indicators that they will move forward is that they request lots of information on the machine including pictures and then they send you a purchase order. However once you send the invoice for payments remember that until you receive the initial payment, the deal is not yet done. Do note that it can take a month or a month and a half between when you receive the purchase order and receive payment.

  1. Have a good and reliable agent on the ground

Negotiations are many times long and tough processes in Africa. It is therefore important to have a well established agent who knows how to handle customers of different backgrounds. Your agent must be able to speak authoritatively about your product. It is also important to empower them to handle a certain level of negotiation on their own. Additionally there should be someone who is always be available or have someone available to the agent to respond to customer queries promptly.

I found also customers want to have a face close by they can call or meet. This gives confidence that you are not only going to sell them you products and disappear.

  1. Knowing the Right People in the Company – Influencers and Decision Makers

Companies are structured differently. In Africa, majority of the companies have 2 decision makers but your product has to be accepted by anything from 3 people to 10 people in the company. Some people are trusted influencers but they not in decision making status. You need to know who those are and be in good terms with everyone. Courtesy and a little bit of charm will go a long way in ensuring that you are well liked by all who meet with you in the company. Because companies in Africa are generally risk averse, they will look for the slightest objection not to buy from you. There are decision makers and there are influencers and you need to identify both categories in your customer companies as quickly as possible. It is important to make the influencers your allies. From experience I have noted that influencers are the ones who you will meet and call the most.

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