What Are Purchasers and Buyers?
When buying for their company, the purchaser gets the lowest price they can get so when the merchandise is resold, the company can make a profit. The less the product is purchased for, the more the company will make when it is resold.
Purchasing positions depend upon the principle of supply and demand. The future looks great for these positions because the public is buying more and demanding more all the time. The products that are deemed as necessary make up a large portion of the merchandise that is bought by purchasing agents.
Jobs for purchase of products are available in any type of business. The business must have certain products to resell to the public. Whether it is food, clothing, furniture, entertainment products, or automobiles, the demand is there for all of these products.
Purchasing agents may buy only products for use by their company. It may be materials used for manufacturing something for another purchaser to buy. For example, the cereal manufacturers buy the ingredients they need to make cereal; the cereal is then purchased by those who supply grocers.
Managers who purchase these products have to study all the on-hand merchandise and the sales to know what amount to buy. Different times of the year may affect the buying as well. Some times are busier than others and most every business has a slow period. It is the responsibility of the purchaser to know what should be ordered and in what amounts at these different times of the year.
The position of purchasing manager or purchasing agent depends upon the company for which they work. The managers often are responsible for more than the purchasing agents. They may be employed by the government and often they will place an advertisement for bids for a certain product they need. The government purchasing agents are responsible for following very strict regulations when it comes to their position. The bid process is one of the rules that many government buyers must follow in order to make the process fair to all companies who may want to submit a bid.
Buyers are the ones who are ultimately responsible for what shows up on the shelves of your favorite store. The regular products will remain the same unless discontinued, but when new items show up, the buyer is normally the one responsible for this.
When large advertisements are launched for certain times of the year such as the holidays, the merchandise buyer and the promotion manager may collaborate on the items being advertised. The proper amount must be secured in time for the advertisement. Also tabs are kept on what is selling and what is not. Often a loss leader will be purchased to get people interested in shopping. This is when something is advertised for a very low price. When the shoppers come to purchase this item they will naturally look at other products.
Education Requirements
The educational requirements will vary with the company with which you work. There are larger stores who will only hire those with a bachelor’s degree, preferably with business emphasis. The manufacturing companies often want to hire associates with either a bachelor’s or master’s degree in one of the applied sciences. The master’s is one of the requirements for advancing to the top-level management positions.
Training must be accomplished by the employee getting a grasp of exactly what the company is all about. The training period for this can take anywhere from one to five years. The retail positions are normally begun at the selling stage. The employees will get on-the-job training by starting as a cashier and moving up as they and their supervisor feel they can handle the next level.
Working with experienced purchasers when they start training for this position is one way of learning exactly how this company does their purchasing.
Proficiency in using word processing and software such as spreadsheets is extremely important. The use of the Internet is another requirement. Knowledge of math and good communication is another. Purchasing managers should be good at making decisions and planning for any unforeseen problems. A good idea of the way people purchase at any given time of the year is another skill that will be learned. Good leadership ability is required and the ability to motivate others is necessary for this position.
Earnings
The purchasing managers and buyers were responsible for working in about 529,000 jobs in 2006. The highest number of purchasing positions were in wholesale trade at about 43 percent and 11 percent were employed in retail. The rest of the workers were in management and some were self-employed.
The median earnings were about $81,570 per year and the mid 50 percent earned from $60,890 to $105, 780. The highest 10 percent earned over $132,040 and the lowest earned less than $46,540. For the farm product business the earnings were between $34,770 and $64,100 a year. As with most jobs, the area of the country and the economy will have certain effects on the job market and the salaries which will be earned.
