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Factors affecting the purchase price

Factors affecting the purchase price

Supply and demand relationship of purchased goods.

When the supply of goods purchased by the buyer exceeds the demand, the buyer is in an active position and can usually get the best price, when the goods to be procured are in demand, the supplier is in an active position and the price may be raised

Quality of purchased goods.

The higher the buyer’s quality requirements, the higher the purchase price. The purchaser shall minimize the total cost by ensuring the quality of the goods.

Quantity of goods purchased.

The unit price of goods purchased is inversely proportional to the quantity purchased. Suppliers often use price discount in order to obtain the benefit of large volume sales. The promotion strategy of deduction. The so-called price discount refers to when the purchase quantity reaches a certain value, the supplier appropriately reduces the list of goods. Price. Therefore, large quantity and centralized purchase is an effective method to reduce the purchase price.

Terms of delivery.

Including the choice of carrier, the choice of mode of transport, delivery time, etc. Supplier if goods are shipped by buyer. Will lower the price: conversely, the supplier will raise the price of goods.

Supplier cost.

The commodity cost of the supplier is the most fundamental and immediate factor that affects the purchase price. Therefore, the purchase price of goods is generally included the cost of the supplier, the difference between the two is the profit of the supplier, while the cost of the supplier is the bottom line of the purchase price.

Terms of payment.

Proper payment method can reduce the purchase price, because the high turnover of cash is important to every enterprise.

Dependence of suppliers on purchasers.

The position of the purchaser in the heart of the supplier is very important. The purchaser who purchases a large amount or accounts for a large proportion of its business is the supplier. Should not easily offend business important customers, the price will not be high.

Patented technology, non-universality and monopoly.

Contrary to the previous one, because of these three factors, these suppliers know that the price is not too high. They still make occasional concessions, but take advantage of opportunities to push up prices.

Price negotiation ability.

The level of negotiation ability has a direct impact on the purchase price, so buyers should strengthen their study and exercise to improve their ability of negotiation.

Analysis and judgment of market information.

It may be caused by the buyer’s insufficient understanding of market conditions, incorrect analysis of price trends, and incomplete cost analysis. Which will lead the price to the high side.

Communicate and understand with suppliers.

Strengthen the communication with suppliers, understand their complaints about the price and payment of their own company, and sometimes invite them to dinner, so as to connect with each other and get twice the result with half the effort. This will get the upper hand on price.

The company’s business reputation.

Good business reputation can promote the supplier’s sense of identity to the company, the supplier’s good mentality will not be reported naturally

Direct and indirect procurement.

If the quantity is not large, the direct purchase from the manufacturer may not be able to obtain the quotation lower than the intermediate agent. If you purchase directly from your home, the price will naturally be lower than that of the manufacturer’s sole agent.

The date of delivery. The short delivery time of urgent purchase may lead to the high price.

Buyer’s responsibility.

The purchasing personnel’s responsibility is not strong, the inquiry is casual, the bargaining desire is not strong, will bring the purchase price is high.

Commercial bribery.

A kickback for a buyer is sure to lead to a higher purchase price.When the supplier raises the kickback, the purchasing staff should express their rejection position to the supplier, or directly tell the supplier that the leader of our company will reward them according to the performance evaluation, so that the quotation of the other side will not be too high. Because you know you can lose customers if you over quote.

Other important factors: 6 kinds of influence of individuals and enterprises in the negotiation(1) information: complete, timely and accurate information is a common weapon.(2) reward: provide the other party with something of value, a large order(3) coercion: use of personal privacy.(4) legitimacy: use the legitimacy and influence of one’s position.(5) professionalism: experts have professional influence brought by professional knowledge.(6) authority: based on personal qualities and characteristics, including integrity, charisma, friendliness, and confidence Of these six influences, the most influential are: information, legitimacy and professionalism.

Factors affecting the purchase price

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