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In-depth analysis of customer procurement costs

11 May 2021 -

        Knowing yourself and the enemy is the only way to survive. This is especially true for foreign trade business. If we want to develop more customers and accept more orders, then we must understand the basic needs of customers. Customers will consider many issues in the process of placing an order, but the customer must be determined in the end. Purchasing behavior is cost. Like the price, delivery date, payment method, etc. that we often discuss, they are all factors that affect customer costs. Therefore, if we want to truly analyze customer purchasing behavior, we must control it from the perspective of cost.

        The cost that affects the customer's decision can be roughly divided into three categories: The procurement cost, operating cost, and opportunity cost

        1.purchase cost

        This is a better understanding, which is the cost that customers will incur when buying this product. This is also the most direct and the cost concept we usually encounter the most. This part of the cost is mainly composed of price, payment method, delivery period, transportation cost, customs clearance cost, and tariff cost. These costs can be easily calculated when we quote customers, inform customers, and can easily help customers Control these costs.

        2.Operating cost

        No matter what type of product it is, it is only purchased because there is a demand for use. Even if it is only a middleman, they sell to the end customer, and finally it is the demand for use. The related cost in the use of the product is the operation. cost. Operating costs are easy to be ignored by us, but for customers, they still attach great importance to this content. Operating costs are the operating costs of the product in use. These costs determine the unit cost of the end product produced by the customer, and this cost determines how much profit the customer can ultimately sell.

The procurement

       3.opportunity cost

       Opportunity cost is also called choice cost. It means that after the customer has gone through some reference, some suppliers that are unlikely to be accepted are eliminated. There may be three to five choices left to the end. Then the customer should not only consider when making a choice. When it comes to  The procurement costs and operating costs, they also need to consider opportunity costs. What we need to do is to impress customers with our sincerity and professionalism, let customers trust us, give customers a clear concept, and let customers know that if you don’t choose us, Then your opportunity cost will be very high. In addition to products with high quality and reasonable price, we can also provide additional technical services, production process recommendations, and so on.

       The three costs are gradually intensified and mutually penetrated, so what we have to do is to understand our products in depth, understand the problems surrounding customers using this product, and understand how to deal with potential losses caused by customers not understanding, so that we can Take more orders.

contact us

  • Telephone:

    +86 20 83280588/83280998

  • Email: shipping@ksgz.sg
  • Address:

    Room 3204-07,Onelink Plaza,NO.39 Jie Fang Nan Road,Yuexiu District Guangzhou,China

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