It’s 2025, let’s trade

The 47th American president, recently sworn in, is widely described as a ‘transactional’ man. It’s a mindset that finds ways to close a deal, even if it means playing a few cards under the table. He says, “If I do this for you, what will you do for me?”

America – a business

Regarding his country as a business, he’s talking about ways in which he can disadvantage other countries and benefit America. Trade tariffs are hogging the headlines. Their counterparts, subsidies, can have similar effects, and operate in a converse way.

Tariffs are imposed on imported goods to disincentivise foreign suppliers by making their goods more expensive for domestic consumers. Subsidies are incentives given to domestic producers to make their goods or services more competitive in domestic and international markets.

Understanding the principles of tariffs and subsidies, while primarily applied at the government level, can also apply to our businesses. By strategically highlighting the ‘costs’ of competitors and offering compelling ‘incentives’ to customers, companies can manoeuvre themselves into a competitive market position.

Stimulate trade and business

We are all looking for ways to stimulate trade and sell, so I attempted to wrap my head around how the new POTUS’s thinking could apply to my business – and yours.

It is about finding disincentives for customers to use competitors and incentives to choose you. Although B2B procurement has become an (arduous) compliance exercise in many instances, there are still opportunities to create reasons for customers to choose to trade with you. I recall a project that I worked on many years ago where my boss appointed a service provider because they ‘had good karma’. Such subjectivity might carry less weight today, but, even in the B2B environment, there’s still some human connection.

Influence a company’s reputation and value

As a communications professional, I am biased towards the influence that a company’s reputation and perceived value can have on decision-making. Through communication, you can build trust, demonstrate your company’s capabilities, express your values and character and showcase existing partnerships and successful relationships. From a ‘transactional’ perspective, a good reputation adds value to your offering and can be a point of difference and leverage.

Other ideas based on the concept of imposing ‘tariffs’ on competitors could include:

• Highlighting competitor weaknesses, like emphasising shortcomings in quality, reliability, lead times or service delivery to potential clients.
• Leveraging exclusive partnerships through building strong, exclusive relationships with key clients to deter competitors.

On the flip side, the ‘subsidy’ concept – using strategies to incentivise trade with you, could include:

• Offering preferential treatment. Examples of this include providing early access to new products or services and exclusive discounts, or customised solutions.
• Investing in client relationships by building a strong rapport, providing exceptional customer service, and fostering long-term partnerships.

As you might expect, I am banging the drum for the power and real commercial value that communication can add to your efforts to tip the terms of trade balance in your favour.

If you’d like to up your trade in 2025, I’m eager to assist.