Write a note on hand to mouth buying
That means the buyers may not get the necessary amount of goods at the time when they need.
They buy goods in bulk quantity expecting that the price of goods will increase in near future and more profit can be earned by selling at high price. For example, when we buy sweets or savories we do ask for samples. Scattered buying It is just the opposite of concentrated buying.
This method is mostly used in case of emergencies, or to the goods used occasionally and not taken into stock. Scattered buying Different Kinds of Consumer Buying A brief idea of the various kinds of buying by consumers, identified by marketing experts, is given below: Kinds of Buying 1. Bulk purchasing is an ideal option for making large quantity of purchase for the future. The main reason of this buying method is to avoid loss that may be caused by the decline in price of the goods in stock. Reciprocal Buying Exchanging goods to meet mutual needs of both parties is called reciprocal buying. The demand for umbrellas and raincoats is more during rainy season. Hand-to-mouth buying It refers to buying in small quantities. In this method, seller organizes fair or exhibition so that buyers can get chance to inspect the goods. In some cases, the conformity of the sample to the bulk needs to be checked. Methods Of Buying Based On Quality Of Goods Generally, in this method of buying, buyer makes buying decision only after being satisfied with the quality of goods. Speculative purchasing is popular in cases of extremely low prices when it is expected that these materials will fetch better prices in the upcoming period. That means the buyers may not get the necessary amount of goods at the time when they need. Buying by description Manufacturers of furniture items usually make available catalogues showing different models to enable their customers to choose. If goods are bought in this method, the buyers need not have to depend on any seller for supply. This buying is also called 'hand-to-mouth buying' or 'current need buying', 'economical buying' , or 'small order buying'.
Buying By Tender Big producers may call tender for supply of raw materials. Goods are brought fro the sources or sellers who provide facilities like reasonable price, quality of goods, transportation and facility of credit payment etc.
Speculative purchasing is popular in cases of extremely low prices when it is expected that these materials will fetch better prices in the upcoming period.
But at the same time, it involves more capital investment of overstocking and high storage costs owing to likely damages. Wholesalers use this method if there is possibility of decline in the price of goods to avoid loss.
Books and notebooks are in demand in the beginning of the academic year.
Goods or services can be bought from one or many sellers or sources according to convenience. For example, most of the publishers of college books are Delhi based in India.
For example, there may be an understanding between a paper mill and a stationery shop by which the former will supply the paper required by the latter and the latter will provide the stationery items needed by the former.
Buyers get regular supply of goods at certain price for fixed duration as mentioned in the contract.
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