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Commerce and its various dimensions

July 01, 2010  by: Mohammed Fouzan  Points: 15   Category: Commerce  Earning $0.60   Views: 766

Here i will explain some details about trading and buying policies which is commonly used terms in commerce world

         

Trade is an integral part of commerce. Trade is buying and selling of goods and services . In modern business sales are possible only through marketing. Let us examine different types of buying and marketing system in practice.

BUYING

Buying is a fundamental activity in commerce, We usually buy goods for domestic use from different business organizations. Their objective of holding goods is to sell them for a big profit. The buying process is undertaken for the following three purposes.

* For consumption
* For selling

Factors that to be considered while buying for consumption are,

* Utility
* Quality
* Price

When goods are bought for sale or for production of other goods, we can say that buying is for business purpose. In such buying factors to be considered are ;

* Profitability
* Easy availability
* Consumer's faith in goods purchased
* Possible fluctuation in price

BUYING POLICIES

While buying goods for business use the following common buying policies are adopted:


1. Conservative buying :-

Buying goods in small quantities for current use alone is a conservative buying
policy. Mostly this type of buying is done by small scale retailers. They buy goods for daily business or at the most for two day's use. As the retailer's buy in small quantities for their current business requirements they will get the advantages of trade discounts.


2. Reciprocal buying :-

We might have come across exchange fair being organized for electrical goods and vehicles. Here an individual gets a new product in exchange for an old one. There are industrial enterprises which organize such type of exchange markets, where reciprocal buying takes place. Reciprocal buying is a process of accepting goods in exchange for other goods. Here the producer can ensure a market for his products.


3. Concentrated buying :-

Buying goods from the same producer consistently gives some advantages to the retailers. Such buying is called concentrated buying. The buyer enjoys the reduction of commodities in this method.




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Commerce and its various dimensions
Here i will explain some details about trading and buying policies which is commonly used terms in commerce world

 

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