The relevance of purchasing, why is purchasing so important? Why don't they just accept my price and that's it. You have to think about that. Your own company, you have a purchasing department, you have to buy stuff, your company buy stuff. So they also buy stuff that they buy from you, you have other people buy for you. And it's important to understand how all this flow works.

And it's it's important to understand that some small actions might have important small actions might have an important impact in your organization. I'll give you in this chart, a small example that if, for instance, you make 5% discount on your item, then means that means it's not only about losing 50% of your profit, look at the numbers and I hope you can you can follow up what what do they mean? So, you have 10 bucks of profit dollars yours whatever. If you make to the selling price of hundred, if you make 5% discount in the end that amounts to 50% of your profit. What would that mean? That would mean that in order to have the same profit profits, you have to sell the double or you have to reduce costs or you have to reduce personnel costs or you have to improve any other process.

So, whenever you think about giving a discount or giving away or making concessions. Always think it over. There's an impact. And the impact is not translated on on one. Which one do you think, Oh, this is only a few bucks, there's a bigger impact. So these counts are lowest prices are a very tricky thing to do.

You shouldn't play your competitive position based on pricing, definitely not based on discounts, based on campaigns, all those are short term manipulations and cannot lead to long term good results. Explore everything else that there is to explore. And you'll see further on the rest of this course. How you can do it. Okay. Take your time.

Go through this chart, understand the impact of purchasing not only on their site but also think for your own company as well. So as a wrap up from this first chapter, the buyer is a person just like you with emotions, with good days bad days with a family, with time constraints very often with pressure from his management, with targets with objectives with KPIs and therefore, is not in a better position than yourself. Your role is to breach his interest with your interest bearing in mind, the buyer main concern is not price. It's having the product on their premises. Whenever you think about the buyer or about a negotiation, think about what you want What Would you like to get what would be nice to have? But what does he wants?

What does he expects to have, as well think from both sides perfect perspectives, think about the relevance of purchasing and the impact of purchasing in any organization in yours or in theirs. It's important to have these broader view. So this is it about the world between buyers and sellers. Sounds conflictive. But they have to work with each other. They don't have a choice.

They don't have a choice. He was a sales rep, you have the expertise, you have the market knowledge, you have the trends, you have technology, you have quality. They need all that. And they need all that and they offer you a price or they will propose you a price or the expected price. So leverage that Try to find out what are their main criteria for purchasing and tackle that with what you have to offer. Meet the offer.

Okay. Hope it makes sense and looking forward to see you on the next chapter. Right