What is purchasing?

Purchasing - the foundation of any business selling products!

 

Buying products or services may seem as a simple task at first, but in order to master it, you need to be aware of the different aspects that will affect your business.

 

1. Be sure to make a plan for your business;

 

  • What products/categories should you focus on?
  • Who is the customer buying them?
  • What markets and ways of distribution should you aim for? - are there different trends in the different markets?
  • What suppliers do you have / want to have?

 

- and stick to your plan!

 

2. When you´re all set on step 1, its time for excecution:

 

- contact the suppliers you aim for, and negotiate!

 

  • prices
  • payment terms
  • marketing-coop
  • annual bonuses based on turnover
  • return-terms
  • service levels / warranties
  • freight costs

 

Do not give in if the supplier says the terms above are not negotiable, ask for the levels where you can begin new negotiations, example: 

-If I sell for 100K the first year, can we negotiate new terms for next year then?

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