What do caveat emptor and caveat venditor mean? How has the general feeling around sales shifted?<\/p>\n\n\n\n
Caveat emptor is the traditional, profit-focused sales model<\/a> while caveat venditor is the more modern, service-focused model of selling. The general value system has shifted from “buyer beware” to “seller beware” due to the rise in technology and social media evening the playing field between sellers and buyers.<\/p>\n\n\n\n Continue below to learn more about caveat emptor and and caveat venditor.<\/p>\n\n\n\n\n\n\n\n Sales was traditionally built on a transactional, self-serving value system. Sales people were a necessary information authority, and people were dependent on them for acquiring services or goods. They also played a crucial role in an economy dependent on production and consumption. When the global financial system fell apart, and access to the internet expanded, it seemed as if there might no longer be a need for salespeople. Despite that, sales has remained a steady industry. What has<\/em> changed is the role of the salesperson, and how we define \u201cselling.\u201d<\/strong> Specifically, there has been a shift from caveat emptor<\/em> to caveat venditor<\/em> sales. The difference between caveat emptor and caveat venditor sales is that the former are profit-oriented sales, while the latter are service-focused.<\/p>\n\n\n\n We generally don\u2019t trust or like traditional salespeople. Sales is seen as a \u201cdog eat dog\u201d industry full of selfish people who can and will take advantage of you to make a quick buck.<\/p>\n\n\n\n Studies show that the strongest emotion associated with sales is distaste\u2014people associate sales with deceit and lack of integrity. Words commonly associated include \u201caggressive,\u201d \u201csleazy,\u201d and \u201cmanipulative.\u201d When asked what they picture when they think of sales, respondents described a pushy dude in a suit, selling shitty, used cars to unsuspecting buyers.<\/p>\n\n\n\n According to old-school \u201ceconomic reasoning,\u201d all people involved in sales transactions are fully informed, making rational choices and prioritizing self-interest. The truth is that we are not always making rational choices intended to serve our own self-interest, and we\u2019re not actually fully informed. <\/p>\n\n\n\n What does this mean? Let\u2019s say you are a used car salesman. Only the seller knows the quality of the vehicle for sale, so only one party is fully informed, leaving your buyer less informed by default. Not being equally informed creates problems in the seller\/buyer dynamic, whether there is ill will or not. For example, the imbalance can cause your buyer to feel suspicious of your motives and consequently less willing to move forward with a transaction. <\/p>\n\n\n\n Furthermore, deceitful sales practices have caused people to associate all sales practices with distrust. This means people with integrity have historically been less likely to involve themselves in the industry, which increases the negative association. <\/p>\n\n\n\nFrom Profit-Focused Sales to Service-Focused Sales<\/strong><\/h2>\n\n\n\n
How Do We Feel About Sales?<\/strong><\/h3>\n\n\n\n
What Is the Source of This Negative Association? <\/strong><\/h4>\n\n\n\n
What Has Changed? <\/strong><\/h4>\n\n\n\n