BUYER MOTIVES

Unlike the ultimate consumer, the industrial buyer is motivated by budgetary considerations such as profit goals, expense quotas, and cost benefit guidelines. He must be prepared to justify his purchase on the basis of measurable performance. Consequently, the considerations, which influence the professional buyers decision to patronize one supplier rather than another, tend to be quality, service, and price.

QUALITY:- the professional buyer tends to define product

quality as that combination of properties which fits the product to its intended use. He probably wants these properties to be present tin the product in precisely the degree needed to suit its purpose and no more. A consideration inseparably related to product quality is the suppliers ability to deliver material, components, and supplies of consistent quality. Consistency in product quality may also enable the customer to save on inventory, because of difference shipments from the same source vary widely in quality, the buyer must carry enough stock to permit inspection, rejection, and replacement of shipment without shutting down is operation.

SERVICE:- businesses, governments, and institutions need a

variety of services in addition to products and materials. The most common types of service requested are technical, replacement parts, delivery, information and sales. Problems of technical nature are quite common wherever equipment, materials, and components are in use. Some vendors rely on their salesmen to provide the expert help users need to solve these problems. The availability of replacement parts for machinery and equipment is another vital concern to many businesses, government agencies, and institutions. Many equipment users prefer to make their own repairs,

because by doing so they can save shutdown time of machines that affect the operation of an entire production complex, such as an assembly line or a processing group. An organization can reduce the uncertainties by preventive maintenance, but it cannot eliminate them. The size of the inventory the user must carry to supply his erratic needs will be materially reduced if his supplier offers a parts services which features: Adequate and representative warehouse stocks at pints convenient to using centers backed b adequate factory stocks Prompt handling and delivery of all orders Reliable delivery information and promises Willingness to give service out of the he ordinary routine in emergencies.

PRICE:- professional buyers seldom rely solely on a vendors

quoted prices. They are much concerned with what is often referred to as the evaluated price. This takes into consideration a variety of factors, such as the amount of scrap or waste resulting from the use of a material, the costs of processing the material, the amount of work a machine will do, the power it consumes, loss or damage liability, and a host of other variables that generate or minimize costs.

SAVINGS:-

apart from the best combination of quality, service, and the price, the industrial customer is also motivated to realize savings in the use of materials and equipment or in the methods by which they are procured. The most obvious places professional buyers look for savings are in the substitution of material and new types of equipment. Finding materials which possess the same properties as those in use but which are easier to process (higher output), safer to use (low insurance rates) or cheaper to transport (less in freight) produce measurable savings.

ASSURANCE TO SUPPLY:-

assurance to supply is vital to the purchasing officers. If the supply flow of an item is interrupted, probable resulting shortages may cause shutdowns of production operations. When a shortage threatens, the buyer may be able to avoid a shutdown by purchasing emergency orders from suppliers with whom he does no ordinarily deal, but such orders are apt to be expensive.

BUYER TEMPERAMENT:-

there can be no doubt that the purchasing officer is a human being before he is a purchasing officer; and the same is true to the other functional executives who influence buying. Each of them is interested in his own status, prestige, ambitions and personal feelings, as well as in the welfare of the firm for which he works.

PURCHASING BY PUBLIC INSTITUTIONS

Purchasing by public institutions, such as state and local governments, school districts, and universities is influenced by legal constraints, which can effect buying decision in ways unrelated to the conditions. One of the most common of these constraints is that regarding sealed bids. Many items purchased by a public institution must be selected on the basis of competitive bids. If a bid is not received by the indicated deadline, it must often be declared invalid and the bidder will be disqualified from competition regardless of his price, service, performance record, or the merits of his product.