Buyer problems

Some variations of the basic model are also studied in the literature. Unlike the basic model and most models considered in this area where the objective is to minimize a total system-wide cost, Lu (1995) considers a model with the objective of minimizing the vendor s total cost subject to the maximum cost the buyer may be prepared to incur. Both the case with a single vendor and a single buyer and the case with a single vendor but multiple buyers under both policies (b) and (c) with identical delivery quantities are considered. The single-vendor-single-buyer problem is solved optimally by closed-form formulas, while a heuristic is proposed for the single-vendor-multiple-buyer problem. 

In a theoretical approach to the problem of foams the first question to be formulated was of a very practical kind—why do food manufacturers make foam Is it the ease of digestion which is aimed at—or the large bulk to impress the buyer and little substance to lower costs If physical chemists knew the answer, it would have been easier for them o conclude what kind of foam is wanted and how it should be best made. 

The supermarket needs to offer organic meat at the same level every day of the year. Hunt (1989) mentioned that, as a supermarket buyer, he had been approached by several suppliers offering one tomorrow, one in two months time and two for Christmas . Safeway required ten cattle per week. To fit into Safeway s distribution system, these cattle would need to be processed through one abattoir, which should be Safeway and Soil Association approved. He believed it to be unlikely that one farmer could supply this number every week of the year. However, the example of Chisel Farm (see Chapter 10) has demonstrated otherwise. Hunt suggested that producer groups be set up in conjunction with a central slaughter point. This, however, would create the additional problem that the producers and the abattoir would have to be located so as to ensure that the transport of livestock... 

In Cuba and the Central American countries, russeting represents no particular problem, as they produce fruit only for the internal market and the buyers are accustomed to it. In fact, many of the buyers prefer it, under the impression that it is sweeter—a belief that is not without foundation, since the rust mites tend to destroy the resistance of the peel to water loss, resulting in a more concentrated juice through the evaporation of water from the fruit. However, rust mites tend to reduce fruit sizes and also the size of the crop, so control is desirable. 

Conclusion with regard to stock of hypotheses and model The substitution process in the constraction industry had the effect of providing impulses ( Cross-adaptation - Hypothesis 5). Automotive manufacturers as brand manufacturers ate especially vulnerable to scandals. Concerning carcinogenic fibres it must be assumed that the public and therefore also car buyers were highly sensitised due to the asbestos problem ( Emotional drivers - Hypothesis 4). 

Let us now attempt to review the field experience of seawater RO plants, perhaps the most important aspect of any commercial process, information most critical to the potential plant buyer. My comments here are biased by our experience at the Desalination Technology Transfer Center in St. Croix, where we have been operating seawater RO plants for more than four years. While it is certain that no two facilities have equivalent operational practice, experience, and problems, and I wish to emphasize this, nevertheless, I believe that by discussing the most limited operations information available, in light of our experience, it will make my comments more meaningful. 

Extra farm storage to cope with a change in marketing strategy can be another reason why more investments are needed. Buyers of farm produce may not have separate storage space for organic products, although this problem may decrease over time. 

This paper will cover the problems plastics producers encounter when they market their products and attempt to obtain a satisfactory return on the stockholders investment. Explaining the former is almost as difficult as accomplishing the latter. I would like to approach the problem first from the viewpoint of the material supplier and the end user. I ll then try to show how buyer and seller get together with several case histories illustrating these points. 

Generally two people are required to complete a sales agreement—the seller and the buyer. So far my remarks have focused on the problems of the material supplier—the seller. What of the buyer What are his problems Why is he so frequently difficult to comprehend and to deal with Let s look at some of his problems. 

It should be fairly obvious, then, that because of the tremendous volume of information, the problem of keeping informed is a difficult one. The raw material suppliers through various techniques can keep the buyer or end user current with product developments. The end user s problem is to stay current while still performing the job he s paid to do. It s a difficult one obviously, involving compromises which are often made against the raw material supplier who does not measure up to the standards established. 

At this point, I hope you have an overall view of the problems of the buyer and the seller and how the relationship is established and nurtured. It would be presumptuous of me to try to explain in any kind of detail how a sale is made. There are far too many variables in each situation to generalize or draw conclusions. I would like to report on several case histories at Celanese which I believe illustrate some of the problems we re discussing today. 

However, water treatment representatives, being human, are generally not all equally good at all functions of the job. And, unfortunately, this multifunctional skill requirement can make for some instability in some field teams, especially within those companies who may be under-prepared for modem market conditions. Buyers become acutely aware of problems when the local representative changes several times in one year. Big company or small company, trust goes out the window. 

When buyers wish to see only the chemical unit price, or if they accept ultralow bids, or force contract prices downward too much, they are misleading themselves and their companies, when they believe they are doing a good job. If the contract price offered or demanded is too low or fails to allow for adequate services, both the vendor and the buyer (especially the buyer) will inevitably be plagued with problems. 

On the basis that water treatment programs can be likened to insurance, underinsured buyers, in the event of a problem, never receive a 100% payout. It is therefore far more important for buyers to ensure the proper protection of a costly production plant, capital assets, and maintaining their life span than saving a dollar on the water treatment contract. 

Large accounts that may encompass entire manufacturing sites or multisite, nationwide businesses are particularly difficult to win. And, even if there are valid reasons to change, the process may take many months, or even years. A further problem is that often the ultimate decision on vendor selection takes place behind closed doors, without the vendor actually being present. Thus sellers have to rely on their primary buyers to conduct the sale on the seller s behalf (third-party selling). If the proposal is not clear and concise, with appropriate cost and benefit summaries, or if the primary buyer has not been properly sold to and does not fully comprehend the key details of the proposal, it is unlikely that the sale will proceed. 

Linking customer needs or site problems to the key points of the vendor product/service through the provision of features and benefits. The features of a product/service are often described in a product data sheet, equipment bulletin, or menu of available services. They can be linked to customer needs as part of the mechanism for resolving those needs. However, on their own, features are of little real interest. What is required is for the seller to provide a description or demonstration of how the product features can be used to solve the buyer s problems or meet customer needs (selling benefits). Customers will buy only those items that can be clearly... 

Effective selling requires the salesperson to seek prior commitment from the buyer before exploring avenues for problems solutions. (One of the biggest problems associated with water treatment and other types of technical selling, using traditional sales sequence methods, is the giving away of solutions without prior buyer commitment, as nine times out of ten, the buyer merely conveys the answer to a problem to his/her existing vendor, and the sale is lost). 

NOTE Buyers buy when the seller fully understands what operational problems exist, what technical solutions can be offered, what products and services the existing vendor (competitor) uses, the ballpark prices currently charged, the customer s company culture, what internal politics affect the buying mechanism, and who the decision makers are. It is at this point the seller pitches the company s products and services accordingly. 

Progress was not smooth mistakes were made, decisions took considerable time to be made, and the early trial results were not spectacular. In fact, this case history mirrors the kinds of real-life problems that water treatment buyers and sellers often experience, especially with large accounts. However, fortunately, most plant surveys are not this complicated, nor do they involve cooling systems anywhere near as large as this example. 

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