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SPECIALSPECIAL

BUYINGBUYING

ARRANGEMENTARRANGEMENT

THAT REDUCETHAT REDUCEPRICEPRICE

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Advertising AllowanceAdvertising Allowance

A discount or of aA discount or of areduction in the billedreduction in the billed

cost or of a shippingcost or of a shippingterms. Adjustment interms. Adjustment inprice may also be in theprice may also be in theform of an allowance.form of an allowance.

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Preferred Selling SpacePreferred Selling Space

An arrangement that aAn arrangement that abuyer can make in orderbuyer can make in order

to get a special priceto get a special priceconcessions privilege is toconcessions privilege is to

agree to displayagree to displaypurchased items.purchased items.

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Free Display MaterialFree Display Material

It is a means of It is a means of 

minimizing theminimizing thecost of cost of 

merchandisemerchandise

promotionpromotion

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DemonstratorDemonstrator

A salespeople trained forA salespeople trained fordemonstration sellingdemonstration selling

who concentrate on thewho concentrate on thesale of thesale of the

manufacturer’s productmanufacturer’s product..

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Unit Packing and PackingUnit Packing and PackingConcessionsConcessions

A form of priceA form of priceconcessions when theconcessions when the

seller may agree or mayseller may agree or maybe obliged to pack thebe obliged to pack thepurchase of the buyer inpurchase of the buyer inin units suitable for retailin units suitable for retailselling.selling.

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Guarantees against priceGuarantees against price

declinesdeclines

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PLACINGPLACINGTHE ORDERTHE ORDER

h f

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1.1.The Importance of The Importance of Information on OrdersInformation on Orders

Buyer should be veryBuyer should be verycareful in filling acareful in filling a

purchase order,purchase order,otherwise hisotherwise hiscarelessness will getcarelessness will gethim into argumentshim into argumentswith sellers or sufferwith sellers or suffer

direct loss.direct loss.

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2.2. Writing OrdersWriting Orders

 The buyer should The buyer shouldwrite out his ownwrite out his own

order even though theorder even though the

manufacturer’smanufacturer’s

salesman may be gladsalesman may be glad

to do it for himto do it for him

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Information Contained inInformation Contained in

an Orderan Order

1.1. Name and address of bothName and address of both

buyer and sellerbuyer and seller

2.2. Department, if any, for whichDepartment, if any, for whichgoods are being purchasedgoods are being purchased

3.3. Date of orderDate of order4.4. QuantityQuantity

5.5. Description of goodsDescription of goods

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6.6. Unit CostUnit Cost

7.7. ExtensionExtension8.8. Total Cost of Order Total Cost of Order

9.9. Credit TermsCredit Terms

10.10. DiscountsDiscounts

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11.11. Transportation Transportation

informationinformation12.12. Delivery dateDelivery date

13.13. SignaturesSignatures

14.14. Special terms andSpecial terms andagreementsagreements

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33.. Order CopiesOrder Copies 

Every purchaseEvery purchaseorder is prepared inorder is prepared in

duplicate: theduplicate: theoriginal copy for theoriginal copy for the

seller and theseller and theduplicate for theduplicate for thebuyer.buyer.

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4.4. Order ConfirmationOrder Confirmation

 The purpose of the The purpose of theconfirmation is to checkconfirmation is to check

the buyer on the order andthe buyer on the order andto give the merchandiseto give the merchandisemanager an opportunity tomanager an opportunity to

go over the list andgo over the list andprevent the delivery of anyprevent the delivery of any

good that he feels unwise.good that he feels unwise.

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5.5. Some Legal AspectsSome Legal Aspects

of Orderingof Ordering

It is an agreementIt is an agreement

containing a promisecontaining a promisewhich is enforceable atwhich is enforceable at

lawlaw..

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The order has a legalThe order has a legal

objective:objective:The sale of The sale of 

merchandisemerchandise Is executed byIs executed by

competent partiescompetent parties Of legal age and saneOf legal age and sane 

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Contains offer andContains offer and

acceptance:acceptance:Buyers offers money for goods andBuyers offers money for goods and

the offer is accepted by the vendor the offer is accepted by the vendor 

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ShowShow

Consideration:Consideration:Buyer promise to give upBuyer promise to give up

money, seller to give upmoney, seller to give upgoods, or a payment isgoods, or a payment is

actually madeactually made

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There is a meetingThere is a meeting

of the minds:of the minds:Both buyer and seller Both buyer and seller 

understand and agreeunderstand and agree

on every condition inon every condition inthe order.the order.

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6. Fair Dealing6. Fair Dealing

We should alwaysWe should always

bear in mind thatbear in mind thatconsistent fair dealingconsistent fair dealing

with vendors maywith vendors may

result in lower pricesresult in lower prices