Trust vs. Competency in Indonesian B2B: The Real Reason You’re Stuck in a Price War
So, you did everything right. You researched the market, invested in the best team, built a flawless product, and even threw in some fancy automation because, you know, efficiency. You’re a well-oiled machine of pure competency. And yet, here you are, sitting across from a potential client who just asked, "Can you match the competitor’s price?"...which, judging by their budget, was probably scribbled on a napkin at a roadside warung.
Why? Because competency is optional, but trust is mandatory.
Your expertise could cure corporate inefficiency, but
If they don’t know you, they don’t trust you.
If they don’t trust you, they certainly won’t pay you what you’re worth.
At best, they’ll let you prove yourself for a fee that barely covers your Grab ride to the meeting.
But, even if they do trust you, you’re still not home free. The economy, internal politics, and the mystical forces of "not the right time" can still derail your deal. B2B in Indonesia isn’t a fragile ecosystem where even one misplaced WhatsApp message can mean financial ruin.
Trust: The Magic Ingredient That Makes Up for Everything Else
Trust is the invisible VIP pass that allows some companies to charge six figures for a PowerPoint template while poor, competent you are stuck in endless Zoom calls explaining why your service actually works.
In an ideal world, businesses would win contracts based on expertise, innovation, and reliability. But in Indonesia’s B2B reality? Trust trumps all. Not trust in your capabilities, mind you. Trust in you as a person.
Did you meet the client’s cousin at a wedding?
Have you ever bonded over how bad Jakarta traffic is?
Can you say pakai hati in a sentence without sounding like you’re reading from Google Translate?
Congratulations, you’re now a trusted business partner.
But if you lack these crucial social stamps of approval? Well, you’re about to enter The Prove-Yourself Hunger Games, where you’ll spend months crafting detailed proposals that nobody will read, quoting rock-bottom prices just to get noticed, and nodding politely while your potential client reminisces about “that one time we worked with Company X” (FYI: it’s their friend’s company).
Even if you do land a project, it’s probably a low-budget “trial” assignment. Only after this corporate hazing ritual will you be considered for something meaningful.
Key takeaway? If you don’t already have trust, don’t bother selling competency. Start selling relationships. Or better yet, start playing golf.
Competency? Yeah, Sure, But Can I Trust You to Make Me Look Good?
Now, let’s address the elephant in the boardroom. Competency. Does it matter? Absolutely! But only after trust has been established. And by then, it’s more of a nice-to-have rather than a must-have.
Here’s how it works: Trust is your VIP pass to enter Indonesia’s B2B inner circle. Once inside, competency becomes an optional upgrade, like ordering guacamole on your burrito. When buyers choose vendors, they aren’t necessarily looking for the most qualified; they’re looking for the safest choice and the one that makes them look good in front of their boss.
If things go well? "Brilliant choice, sir! You have an eye for selecting top partners!"
If things go south? "Hey, we trusted them! Not our fault!"
See how that works? Trust is a built-in corporate insurance policy, shifting blame away from the decision-maker. That’s why some companies with barely functioning services keep landing big contracts, while competent but unknown firms are stuck offering “discounted first projects” just to get a shot.
So, what’s the winning strategy? Simple: Be less concerned with competency, and more concerned with trust. Attend networking events. Accept every coffee meeting. Laugh at unfunny jokes. Master the art of the empty nod while enduring long-winded monologues about “synergy”.
At the end of the day, it’s not about being the best. It’s about being the safest bet.
The Price Trap: When You’re Stuck Proving Your Worth (Forever)
So, you’ve done the impossible. You’ve built trust without having a blood relation to your client’s neighbor’s cousin. You’re officially in the running. You can already picture the premium contract, the glowing testimonials, the well-deserved recognition of your superior competency.
And then, the dreaded words hit you:
"Love your work. Really. But we’re on a tight budget, so can you lower your price?"
The classic "price squeeze" move, where your client, despite trusting you, still treats you like a supermarket discount item. Of course, you could stand your ground, boldly proclaiming that your value justifies the premium. But you won’t. Because the alternative is watching your deal waltz into the hands of a competitor who barely meets industry standards but somehow offered a 40% discount and a free lunch.
Once you’ve built a relationship, you’re still expected to compete on price, because, well, why wouldn’t they try to get a bargain? This is about “partnership” and “growth together”, which is corporate-speak for “we squeeze you dry now, and you hope for better margins in the future.”
And since you’ve already invested weeks (or months) into this relationship, you’ll cave offering a special price just this once. Then again. And again. Until you realize the “partnership” is actually just a permanent price war disguised as loyalty.
One day, you naively hope they’ll recognize your true value and finally pay what you deserve.
They won’t.
The Timing Trap: When Trust and Competency Aren’t Enough
So, you’ve done it. You built trust, jumped through social hoops, delivered impressive proof of competency, and even survived the price negotiations. Surely, now the client will sign the contract and finally pay you what you’re worth, right?
HAHAHAHA!
Because you’ve overlooked the final, most infuriating roadblock in Indonesian B2B sales: Timing.
You see, even if you are the most trusted, competent, and reasonably priced vendor in the market, none of that matters if it’s “not the right time.” Your client may genuinely love your work, but unfortunately, their internal business horoscope says otherwise.
Is the company in a cost-cutting phase? Too bad! Your proposal is suddenly “too expensive,” and they’ll get back to you “next quarter” (they won’t).
Did a new CFO just take over? Well, congrats, your proposal is now useless because your competitor, who just happened to golf with the new guy last weekend, now has the edge.
Did the CEO just wake up in a bad mood? Your deal is dead, and no, you’ll never be told why.
This is the B2B waiting game, where everything must align at just the right moment for a deal to happen. One wrong timing, and it’s back to square one.
But don’t worry, your client still really likes you. They’d love to work with you. Maybe next year. Or never.
So, what’s the verdict? Should you:
Ditch competency,
Perfect your small talk, and start aggressively nodding at every golf club in Jakarta?
Throw your pricing strategy into the abyss and embrace your destiny as a B2B budget version of a flash sale?
No, of course not. (Well, not entirely.)
But here’s what you do need to accept:
This is not a fair fight.
Competency alone will not save you.
Pricing wars will bleed you dry.
Without trust, you’re just another hopeful vendor, shouting into the void while clients pretend they’ll “circle back.”
The rules of survival are simple:
Trust first, always. Make friends before you make a pitch.
Competency is the backup plan, not the entry pass. Nobody cares how great you are until they already trust you.
Stop competing on price. Instead, reframe the discussion around value before you become the go-to cheap option.
Accept that timing is beyond your control. Sometimes, you just have to wait (or conveniently show up at the right dinner).
Indonesia’s B2B world is a trust-ocracy. So stop resisting, start networking, and if all else fails, become someone’s trusted drinking buddy.
Deals aren’t about what you know. They’re about who picks up your calls.