How Savvy Women Entrepreneurs Make Buying Decisions

01/01/2005

By Mary Cantando, WE Inc. Business Growth Advisor

Have you ever noticed that women shop differently from men? The things that guys think are important frequently have little value to us. The gizmos and features that make their eyes light up and bring out their wallets often leave us cold. And the things that drive us to buy are often considered extraneous "fluff" by men. These purchasing differences show up in our business purchases as well as our personal lives. And women entrepreneurs play the buying game with a set of rules that we made up, a set that the guys don't even know about.

For the past four years, I've worked exclusively with women who own and run multimillion dollar businesses. During that time I've noticed a consistent thread that drives these women's purchasing decisions-relationships. Now this is not a startling discovery. In fact, it is in harmony with the adage that women are the relational gender, and men, the autonomous, task-orientated one.

But I decided to push on this concept a little by interviewing five fascinating, successful women entrepreneurs from across the country. Some of these women told me that even though a company's marketing message may appeal to them, the sales process (and often the salesman) turns her off. A key reason for this is the difference between male and female language. As women, we tend to use sentence-enders such as "don't you think," or "is that okay?" to build rapport. Men often translate these relationship builders to mean that we are unsure of ourselves. And because they often value status and information above relationships, they tend to think less of us when we don't adopt their crisp, clipped business language. That lack of respect comes through in their communication and often switches us from buying mode to escape mode.

Each of the five women you're about to meet gives thoughtful consideration to all her purchasing decisions. She factors in time, cost, service, quality over quantity and, in true female style, the impact a purchase may have on her community.

Nikki Olyai, President and CEO of award-winning Innovision Technologies, recently purchased a new corporate-wide IT infrastructure, including servers, desktop PC's and accompanying software. Her philosophy on purchasing decisions-"As a woman CEO and a loyal customer, I take more time, seek more information and am more likely to obtain input from others-including fellow business owners. I research the most effective alternatives, and place a high value on relationships, responsiveness, trust and reputation." What does Nikki look for in a provider? High on her list are a strong value system, clear signals that they will be committed to her organization's success and a proactive approach to building the relationship. Of course, cost effectiveness is also important, but competing vendors might be surprised to learn that Nikki also gives high scores for an unwavering commitment to community service and development, something they may not even consider in selling to her or other women entrepreneurs.

Karen Ross' showplace Montgomery's Florist is a family-owned business that has served the Raleigh, North Carolina market since 1922. One thing that sets Montgomery's apart is Karen's focus on elaborate vases and containers. Here her insights on purchasing a large quantity of vases at a recent New York trade show. "The men who were there were just looking for something that was good enough; they just wanted to make the purchase and move on. I was looking for something that was perfect. I handpicked every single vase. I wasn't going for easy--I was going for the perfect buy. There wasn't a single man there hand selecting items as I did; they all focused exclusively on the price." Karen, who services many corporate clients, firmly believes that women entrepreneurs have different buying habits, "My experience in selling to other women business owners is that they take more time than men; they're more deliberate in their decision making. But because they've invested greater time, they are much more loyal customers."

Brogan & Partners Convergence Marketing is a Michigan-based marketing, advertising and PR firm. When Marcie Brogan started her business in 1984, one of the first things she searched for was office furniture. "It was all 'Male' stuff: ugly, mahogany, overpriced. So I decided to buy residential furniture to use in the office. It has taken years for the market to catch up to the kind of office furniture that women really want. I think women's growing ownership of businesses has made the real difference." Marcie is not afraid to make unusual purchases that will help her company stand out. She daringly overpaid for a historic Victorian mansion that "looks like a house but sits in the middle of the city's business district." Marcie feels that the house reflects the fact that her business runs like a family. The big front porch is "welcoming." The furniture is residential. "The fact that it was a home fits the character of our ad agency."

Another decidedly female purchasing decision is Marcie's "Nails and Tails" benefit for her employees. Staffers enjoy free "Monday Morning Manicures" every other week and free "Bust Your Butt Workouts" with a trainer twice a week. You can imagine what these perks do for workplace energy and enthusiasm; the result being not only happier employees, but by extension, happier clients. What do men say about her "Nails and Tails" program? "They laugh!" Marcie tells us, "But women get it; they love it!" Marcie believes that benefits such as these show her appreciation for the talent, the work, the passion of her staff. Would a male purchase services like these? Maybe, but Marcie thinks "unusual perks are often thought of as frills by men." But the positive results, things like low employee turnover, have convinced her that there is real benefit in providing them.

Sandy Abalos owns Phoenix-based Abalos & Associates, a full-service CPA firm specializing in small and middle-market businesses. Sandy recently purchased a new computer system and upgrades on all her software. Working with both male and female business owners over the years, she has noticed that males "frequently borrow money to purchase products to meet their needs. Women business owners are different because we naturally plan for such situations." Sandy planned, budgeted and paid cash for her new computer system, leaving her debt free. This new system was a complex purchase which she spent a considerable amount of time researching. One of her deciding factors in vendor selection was working with a sales person who provided the information and then didn't push her into a purchase-someone who let her make the decision in "her own good time."

Sandy feels that the big difference between the sexes is that "Women seem to put more thought and analysis into businesses purchasing decisions. We also frequently save for the purchase. Men seem to buy what they need, when they need it, and finance it if they do not have current cash available. It seems to me that women are just more prudent than men in these kinds of decisions."

Suzanne Clifton heads The Castleton Group/The Executive Staffing Group, a full-service Professional Employer Organization specializing in human resources outsourcing. With the idea of creating her offices "as nice as my homes," Suzanne has developed a non-institutional work environment that enhances the time her employees spend at work. She has achieved this by combining form with function. She buys her furniture from design companies rather than office furniture vendors, and then has each workstation assessed to be ergonomically correct. Overall, Suzanne feels that "Men are not usually focused on how the office looks and feels. Their purchases are either traditional or very contemporary; they tend to have very boring stuff."

Like Marcie, Suzanne also provides special perks that men might consider frills. Once a week, she has lunch catered for her staff. "We recently had an All Staff Day with meetings, lunch, golf, pool, massages, manicures, pedicures and dinner." Suzanne tells us, "I think that women have an intuitive sense about how to blend these things in to enhance the business environment. The end result is a better workplace and a more creative and productive team."

Whether you're just starting your business or up in the millions, purchasing is a key component of success. As you grow your business, consider the impact your purchasing decisions have on your employees, your clients and your community. As women, our intuition helps us determine what our employees and clients want and need, and we are open to new approaches to meet those needs. Whether selecting a vendor that gives back to the community, spending the time it takes to find the perfect vases, providing "frills" such as manicures and personal trainers, saving enough cash to make significant purchases or decorating your office as nicely as your home, we make purchasing decisions quite differently from our male counterparts. And most of us feel confident that our approach is the better one.

Copyright 2005 by Mary Cantando. All rights reserved.

Mary welcomes your comments, complaints, or compliments.
Contact her at www.WomanBusinessOwner.com

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