Sample Add 2 Performance Newsletter Article

Who are Buyers, really?

To understand Buyers we must first understand how purchasing and buying positions have evolved.

There are some companies that still conform to the old Purchasing methods. That method being as one Buyer’s handbook describes; purchasing is the act of and the functional responsibility for procuring, materials, supplies and services. The buyer’s mandate is to obtain the right equipment, material, supplies, and services, of the right quality, in the right quantity, at the right price, from the right source, delivered at the right time.

During the 1950's and the early 1960's purchasing was still considered primarly a clerical function. Their job was mostly limited to finding suppliers, obtaining pricing and delivery dates from them and forwarding the information to management. Management would then make the decision as to who the order would be given. The “buyer” would then type and issue the purchase order. In truth not much changed at least until the late 1960’s, although in some areas the process was followed until the mid 1970’s. Today times have changed. Changed to the degree that many buyers are former practicing engineers, and many others have some form of technical background. Even those without technical knowledge have become much, more knowledgeable about the products/equipment/materials they purchase.

True there are still some “died in the wool” paper pushers around who have bought a variety of materials over their careers, from piping materials to major equipment. But most of them wouldn’t know a ball valve from a gate valve, what a thermowell was or the difference between casing and tubing, even though they have purchased many of them time after time. Many buyers to this day have never even seen the majority of the “stuff” they buy and probably wouldn’t recognize it if they did. Surprisingly some engineers have not seen (in real life) much of the equipment they are charged with spec'ing out.

For the most part though, buyers and engineers are much more knowledgable about what they are purchasing. The fact is many buyers now hold MBAs and/or B. Comm. degrees. So don’t be caught assuming your buyer is a file clerk turned buyer coming up through the ranks. It is time to recognize and acknowledge that while they may not know your product well, they certainly know the whether or not it is a commercially sound investment for their company. That investment is determined by evaluating the end to end cost. Buyers now have a “Cradle to Grave” mentality. they know the life span of your product, they know the cost of warehousing and disposing of it. So I caution you to take care when giving your sales pitch. Make sure which level your particular buyer is on and don't over do the techno babble if they don't comprehend, but don't under estimate their level of understanding what your products real cost is once they have purchased it.

The message here is - never assume anything, check out the level of expertise/knowledge before you open your mouth to put your foot in.