411 The Limits of Opportunity Cost in Japan: A Sales Guide to Winning Reluctant Buyers

THE Sales Japan Series by Dale Carnegie Training Tokyo Japan

n the West, we often emphasise that inaction doesn’t necessarily mean safety for the buyer, and there is a real cost to taking no action. We talk about the “opportunity cost” of doing nothing. A buyer’s competitors aren’t stagnant; they’re actively seeking new advantages with something better or more advanced. The market is never still either, as it’s always shifting, and companies need to be agile to keep pace. Economic conditions are equally unpredictable, with movements in currency, oil, gold, agribusiness etc., and other factors creating constant change.

In this volatile environment, companies can’t afford to stand still. Innovation, adaptation, and flexibility are essential. Any opportunity to strengthen an offer relative to competitors must be seized and maximised. The ideal outcome is one where our offer can’t be easily compared to what salespeople know as the “Matrix from Hell.” This matrix, favoured by procurement departments, lists items to be purchased down the vertical axis and supplier names across the top on the horizontal axis. Prices are then compared, and the cheapest option is chosen.

We don’t want our offer to fall into this pricing matrix. Instead, we aim to differentiate our offer so that it defies easy comparison. We need to add value beyond price alone. If our offer lacks the necessary depth, we need to think creatively about what we can provide to stand apart, avoiding price reductions or loss-leader tactics. Our goal is to create “apples to oranges” comparisons, making it impossible for price to be the only factor in the buying decision.

As a result, we constantly highlight the downside of inaction to the buyer. In this VUCA world (volatile, uncertain, complex, ambiguous), how can any company feel confident doing things as they have always done them? The ground is shifting beneath our feet, and companies need to be capable of responding. As salespeople, we represent something new and different for the buyer, offering them a lifeline to navigate the daily VUCA challenges.

Do Japanese buyers see it this way? Unfortunately, they don’t. Change in Japan is a double-edged sword. Intellectually, it’s acknowledged as necessary, but buyers instinctively resist it. They closely associate change with risk. Culturally, Japan emphasises group dynamics, partly to disperse any risk among all members, so no individual is held accountable if things go wrong. Japanese salespeople, for instance, prefer bonuses over individual commissions, as they feel more comfortable being rewarded as a group.

Buyers share this perspective. They don’t want to be singled out over a purchasing decision. Collective agreement to change suppliers or add a new supplier feels much safer. The ringi seido system of collective decision-making perfectly suits this desire to spread accountability. By obtaining the seals or hanko of all key decision-makers on a proposal, the potential blame is shared if something goes wrong.

A salesperson parachuting in with their shiny idea about the opportunity cost of doing nothing quickly finds themselves in a thorny position in Japan. No one here is likely to get fired for missing an opportunity. Buyers fear mistakes far more than they fear a lack of urgency. With no pressure to act, talk of “missing out” seems quaint. Here, doing nothing isn’t equated with loss; in fact, it’s often praised, as it avoids risk and keeps the enterprise safe.

This cultural inertia partly explains Japan’s relatively small venture capital market, the lack of unicorns, and the many “zombie companies” that neither thrive nor disappear but manage to survive. Everyone involved seems determined to make no changes, ignore opportunity costs, and look away from change, hoping it will pass them by.

If you’re passionate about motivating buyers to embrace change or realise the consequences of opportunity cost, be prepared to feel like you’re talking to yourself. Japanese buyers see no upside to making changes and plenty of downsides, so they tend to hold their ground. That doesn’t mean we shouldn’t try, but we should avoid making opportunity cost our primary “hail Mary” play to close the deal.