Home PEx Business and Careers The Working Filipino
COMMUNITY NOTICE: PinoyExchange will be under maintenance from February 13, 2023 to February 19, 2023. We will be on read-only mode. Please note that during this time, you can still access the forum and content, but user activities like new threads and comments, etc. will temporarily be unavailable. We apologize for any inconvenience.

Company Purchasers.... How do I deal with them?

BadGiRLBadGiRL PEx Veteran ⭐⭐
Hi,

I need a few pieces of advice from the business people here. The thing is, kunwari I want to sell, say, aluminum foil to Robinson's Supermarket or what have u big supermarkets out there.

What do I do? If I get the name of the purchaser, what's next? A formal quotation? Or an informal one muna? Should I get connections to, uhm, make the way easier?

Or do I call muna to talk to the purchasor? What if the purchasor asks for some "gratitude token."? Do I say... ok what do u want?

And has anyone tried selling their products to SM or Robinson's? Ok ba mag bayad? Mahirap kasi maki business sa mga ayaw mag bayad sa oras e.

Do these companies still negotiate the price quotation you send them?

Salamat :beam:
«13

Comments

  • tennisacetennisace PEx Veteran ⭐⭐
    Before you even think about selling your aluminum foil, you will have to ask yourself:

    what makes your aluminum foil better than what's already out there?
    why would anyone buy your aluminum foil in the first place?

    You don't send quotations until they ask for it. First, you have to convince them that it is in their best interest to buy your product. In business, everything is negotiable. Remember, a good deal exists only in the mind of your customer. Never be afraid to walk away from a negotiation. Don't ever compromise your position by putting yourself in a situation where you become desperate to do business with them. You have what they want, thus you have the upper hand.

    If any of these buyers (or purchasers) ask for "gratitude tokens", tell them to go **** themselves and go tell his boss about it.
  • 1. malaki volume ng SM or Robinson. kaya mo ba?

    2. matagal magbayad. can you wait? may revolving capital ka ba?

    3. if you know someone whos supplying the shop, ask for a referal or introduction.

    4.pag mall ka, you need to apply for suppliers I.D. submit mga business license, invoice etc.

    5. di maiwasan ang mga"gratitude token" once you give in, tuloy tuloy na yan. as long as you supply may cut ang purchaser.
    hangat maaari iwasan.pag di kaya, padalhan mo na lang at the end of the year ng regalo. thats it, para smooth ang relationship ninyo. once again iwasan. its up to you.

    6. try supplying mga small supermarkets muna. or mga restaurants. ikanga end-user. check out restaurants na malakas sa take-out.

    7.maghanda ka ng samples para sa mga purchaser.pag magaling ka, go to the owner. mas madali mag sarado ng deal.once again, you need introductions.

    8.always remember, the buyer is not really interested in how much your product cost or how much they will save.
    the bottomline is, they are interested in how much they can profit from your item. how fast they can sell it.

    good luck and dont give up. try to reach out to other markets aside fromthe obvious. build momentumas well as confidence
  • Yeah dac is right. If this is your first time supplying, try first your friendly neighborhood supermarket. Sobrang malaking volume ang kailangan pag sa SM or Robinson's ka kaagad. You need lots of money dyan.
    The company my dad works for offers printing services to a leading pizza company. Millions of copy ang requirement every month. He needed a strong backer to get the account. Plus kailangan good quality talaga kasi malakas ang competition. Other agents are lurking at corridors of the pizza company's head office. Of course if you have built the trust and confidence of your purchaser, lagi ka na nilang tatawagan (di mo na kailangan magbantay sa opisina). My dad gives the purchaser a handsome commission for every job order, takes them out to dinner or drinks, and is always in the list every X-mas. Be prepared to shell out extra money during the ligawan stage.
  • tennisacetennisace PEx Veteran ⭐⭐
    These obligatory under the table dealings with purchasers is what drove me to take my business into the US. It's really pathetic to think that your final cost of doing business includes paying off these creeps! There's nothing wrong with wining and dining them, but giving them "commissions" in exchange for orders is something where I draw the line on. I had at least six purchasers fired for this type of conduct by going straight to their bosses. I no longer deal with purchasers in the Phils., but when I have to, I bypass them and go straight to the top. You should have no problem in getting an appointment with the head honchos as long as you package yourself convincingly. By that, I mean the way you dress, the way you speak, the words you use, and the confidence you project. The key to selling your product is the ability to sell yourself first. I currently deal with sellers in the Phils. who are seeking to market their products into the US and Europe.
  • BadGiRLBadGiRL PEx Veteran ⭐⭐
    Ok, I'll clarify first. I'm not selling aluminum foil. Hypothetical product lang yun. I'm actually selling something else. And is desperately trying to look for people who can help me, introduce me to, or give me names of purchasers of big supermarkets.

    Tennisace:

    what makes your aluminum foil better than what's already out there?

    --- what I'm selling is cheaper than the others in the market of the same quality. from my market studies pa nga, I found my product would sell even cheaper than the ones of the worst quality.

    why would anyone buy your aluminum foil in the first place?
    --- for my product, because everyone uses it everyday. I still have yet to find or meet a primitive who doesn't use such. :beam:
    You don't send quotations until they ask for it. First, you have to convince them that it is in their best interest to buy your product. In business, everything is negotiable. Remember, a good deal exists only in the mind of your customer. Never be afraid to walk away from a negotiation. Don't ever compromise your position by putting yourself in a situation where you become desperate to do business with them. You have what they want, thus you have the upper hand.

    If any of these buyers (or purchasers) ask for "gratitude tokens", tell them to go **** themselves and go tell his boss about it.

    Gotcha on these tips! Thanks a million.

    Oh btw, how long would these companies "study" the samples I will send them? LIke, how long before I can expect answers? Should I follow up on them? Or patiently wait lang for their call?
  • BadGiRLBadGiRL PEx Veteran ⭐⭐
    Originally posted by dac
    1. malaki volume ng SM or Robinson. kaya mo ba?
    --- Yes po. :)

    2. matagal magbayad. can you wait? may revolving capital ka ba?
    --- Yep. I can wait. Capital? I don't have to shell out anything. I just have to get them to buy or sell my product. My uncle handles the finances.

    3. if you know someone whos supplying the shop, ask for a referal or introduction.
    --- Hmm... too much red tape in the Philippines.... and also too much bragging creeps/ @ s s h **** out there who would promise you the world na kesyo they are chums with these people and kung sino man silang importanteng tao na kaya ako bigyan ng intro yet would not return your call or give u the details they promised. That's the problem with the Philippines, some people hype themselves up too much...yet wala palang saysay buhay nila. And besides, sa lagay ng red tape, minsan pinapaikot ikot lang nila ang supplier. Alam mo naman sa Pinas... sobrang padrino system. ugh.

    4.pag mall ka, you need to apply for suppliers I.D. submit mga business license, invoice etc.
    Hmm..suppliers I.D.... bago yan ah..d ko alam I still have to get one of those.. HOw do I get to acquire such pala? :) Business licenses and other choochoo... ok na yun. I just have to get the product/s in.

    5. di maiwasan ang mga"gratitude token" once you give in, tuloy tuloy na yan. as long as you supply may cut ang purchaser.
    hangat maaari iwasan.pag di kaya, padalhan mo na lang at the end of the year ng regalo. thats it, para smooth ang relationship ninyo. once again iwasan. its up to you.
    ---- Hmm..ok lang ako sa gift pag pasko, wag lang may cut sa oorderhin. Sisipain ko sya. :flog:

    6. try supplying mga small supermarkets muna. or mga restaurants. ikanga end-user. check out restaurants na malakas sa take-out.
    ---- Actually, I'm doing that. Iniisa isa na namin ng friends ko ang mga may kakilalang small supermarkets... and restaurants din pala. :D

    7.maghanda ka ng samples para sa mga purchaser.pag magaling ka, go to the owner. mas madali mag sarado ng deal.once again, you need introductions.
    That's my problem, the intro part.

    8.always remember, the buyer is not really interested in how much your product cost or how much they will save.
    the bottomline is, they are interested in how much they can profit from your item. how fast they can sell it.
    Got it. :)

    good luck and dont give up. try to reach out to other markets aside fromthe obvious. build momentumas well as confidence.
    Thanks. :D
  • BadGiRLBadGiRL PEx Veteran ⭐⭐
    Gabriela: Hmmm.... the wining and dining part, I think ok lang yun. Then again, I sincerely doubt I'd be open for under the table commissions for purchasers and like what tennisace said, I'd probably ( dunno what might happen) go and tell his/her boss and to hell with the business deal.


    Tennisace and dac: so, I guess sa initial price quotation ko, kailangan i-jack up ko yung price since they will still negotiate for the price pa?
  • tennisacetennisace PEx Veteran ⭐⭐
    Badgirl,
    Give the purchaser a couple of days to consider your product after which you should do a follow-up. You want to get the purchaser's attention while he/she still remembers you and your product. Sometimes, it also helps their memory if you send the purchaser a short note thanking him/her for the opportunity and when he/she can expect your follow-up call. If your product gets rejected, send the thank you note anyway.

    As far as pricing goes, you should set a volume-based pricing scale. Different product groups have different inherent profit margins. Before you decide on the minimum profit you're willing to accept, consider the normal margins for that product group. If the average margin for that group is around 20%, it would be suicide to set a minimum margin of 35%. Also consider your overhead costs. If your overhead costs are lower, of course, you will be more apt to accept a lower minimum margin. Once you establish a minimum profit margin for a particular product, you will then set a volume-based pricing scale: Lower quantities will cost more, higher quantities will be discounted. You will also have to set price breaks: for example, 100 pcs = 1,000 then 500 pcs = 850 then 1,000 pcs = 750, that sort of thing. It would also help in your pricing scheme if you know what profit margins your prospective customer is looking to achieve. If you can work out a pricing scheme for a particular customer that allows them to exceed their margin goals while creating a comfortable margin for yourself, I'd say your product would look real good to them. Remember, having a pricing scheme that makes sense is vital in keeping your product viable. You want to be consistent in your pricing. Small variations in pricing is okay as long as it makes sense. Most people don't realize that purchasers sometimes talk to other purchasers. If your pricing is inconsistent from one purchaser to another, they will be pissed off. A lot of purchasers have very big egos, so beware.
  • Originally posted by BadGiRL
    Gabriela: Hmmm.... the wining and dining part, I think ok lang yun. Then again, I sincerely doubt I'd be open for under the table commissions for purchasers and like what tennisace said, I'd probably ( dunno what might happen) go and tell his/her boss and to hell with the business deal.
    It will always be your call. In my dad's situation kasi, sobrang lakas ng competition nila and other competent commercial press companies are always lurking. But now everytime the pizza company has requirements, they call my dad w/o blinking an eye (kahit mas mahal services nila kaysa competition). wat's 10,000-20,000 commission in exchange for 3 million worth of sales a month. Pero kung sa tingin mo you feel shortchanged and the purchaser is earning more than you do for just patronizing, ibahin mo nalang tactic mo.
    Kung sa gobyerno ka naman makikipag deal, sadly, sobrang applicable ang sinasabi kong ito, low ranking o high ranking official man ang kausap mo. Iwasan mo yang sektor na yan.
  • tennisacetennisace PEx Veteran ⭐⭐
    Commissions are earned. What that purchaser is getting are not commissions. They're called kickbacks. But, I guess you have to do what you have to do to keep the business. It's just a shame that the corruption we complain about in politics also looms large in business. That's just the reality of it. There has to be a point where people have to stop perpetuating these unethical practices and start cleaning up their lives. We see daddy doing it, so we think its okay and we condone it. What values are we teaching our kids if we not only condone but also practice corruption? We have to break the cycle. So what if the competition is stiff? The end does not justify the means. I would rather have my product or service stand on its own merits, not on the amount of kickbacks. If I was the owner of a department store and I found out that my purchaser is taking kickbacks in exchange for orders, he'd be fired in a heartbeat. You see, it is the purchaser's responsibility to make buying decisions that are in the best interest of the company. Once he starts working for his own best interests and the interests of the seller, then he is no longer an effective employee. He becomes a liability.
  • jtanjtan PEx Veteran ⭐⭐
    take note if you want to do kickbacks you are at risk of being banned from future dealings in case you are caught doing it...
  • BadGiRLBadGiRL PEx Veteran ⭐⭐
    Gabriela, 10K of commission IS big compared to SALES of 3,000,000. Ang liit ng 3,000,000 na sales a month kung tutuusin for 10 to 20k. Then again, perhaps mas malaki ang profit sa printing business.

    Thanks all for your comments. Now I'm having particularly hard time with a couple of people I do business with. They are supposed to take care of SM, but it has been a week and counting... and I have a few other friends lined up who have contacts in SM and would like to try din. I feel it's very unethical if I give them the go ahead when some other people are still trying to get the account. I feel naman na they are working TOO d a m n slow. I want sana to talk to them that I'm giving them till Saturday to show me results or I give it na to my other friends. Would this make it unethical pa rin ba? Or do I see everything thru na sobrang apparent na they won't get the account before I hand the chance to my other friend? I feel naman this would take too long..... and I'm really pressed for time. My uncle will be wanting results... hmmm...
  • tennisacetennisace PEx Veteran ⭐⭐
    Badgirl,
    It is always a problem if you depend on other people to make the contact for you. You should take the initiative and make contact yourself. Most, if not all, of purchasers are considered cold contacts anyway. If your so-called friends are friends of purchasers, you should ask your friends to personally introduce you to these people and then you can do your thing. Don't depend on your friends to sell for you on your behalf. They have no vested interest in your business (so why do you think it's going slow?) and you end up with the inevitable (and possible costly) "utang na loob" if you get the deal. Don't expect other people to make deals for you. Take the initiative and make your own.
  • Gabriela, Kahit saan mo tingnan ang kickback ay bawal at ilegal. I was a buyer in the Phils for 3 years and I still am now that I’m living here in Australia. It is one of the major reasons why I left my job in Pinas because everyone thinks that all buyers can be bought. I did get some astronomical offers from some unscrupulous businessman and I couldn’t handle it that’s why I have to leave. Baka kasi bumigay ako sa offer and regret it in the end. I hate to say this but the kickback system your dad practices is what makes our country undesirable for legit investors. Imagine a buyer who earns an average 20k a month. And here is Mr. Supplier who offers him 100k for a 2-million worth of purchase a month. Yes, that’s the going rate for P.O. over 2 million pesos. What would the buyer do? Well, most will take it and live life in paranoia. I rejected the offer, resigned and ran away. I’m still a buyer now but in a kickback-free environment. Receiving kickbacks here carries a jail sentence.

    Badgirl, the last thing I want to do as a buyer is to transact business with some fly-by-night company. I suggest you send the buyer a well-prepared company profile, or better yet make an appointment and give it personally. When I look at 3 qoutes from 3 supplier, given equal price and quality; I’d go for the supplier with the best track record. So, start preparing that company profile.

    I have more tips for you but I have to go back to work. Good luck.
  • Originally posted by aussiepugo
    Gabriela, Kahit saan mo tingnan ang kickback ay bawal at ilegal. I was a buyer in the Phils for 3 years and I still am now that I’m living here in Australia. It is one of the major reasons why I left my job in Pinas because everyone thinks that all buyers can be bought.
    Kakatawa, kasi when my dad was a purchaser for one of a former politician's co. he would tell us na dapat matagal na syang mayaman. Kaliwa't kanan ang offer pero hindi nya maatim. Pero ngayong sya naman ang supplier ginagawa na nya yung kinatatakutan nya dati. I still think that not all buyers can be bought. it's not an exclusive filipino trait but since we have not seen economic improvement, a lot are now biting the bait.
  • BadGiRLBadGiRL PEx Veteran ⭐⭐
    aussiepugo: Hmm..now I have a problem. The company is still pretty young. But this is my uncle's new company, he has this mother company which has been in operation for a few years now. He doesn't really have problems on his first company because he is relatively known in that business. He retired from the company he worked for and then opened his own business.

    Now I really have a problem. I don't know how I will make a corporate profile when the division is not yet a year old.
  • why don't u try isetann or Plaza fair first? Just go to their branch in manila, tapos leave ur samples in their purchading dept.
  • BadGiRLBadGiRL PEx Veteran ⭐⭐
    dRevil: Thanks for the idea. Someone actually suggested that na rin to me, but I don't need any connection for that? Btw, how good naman are they at paying their suppliers? kasi isa pa, ayaw ko sa mga hassle mag bayad. I mean, kunwari usapan 60 days ang term, I want my money in 60 days. Kasi may companies like this group of companies I know, they still owe their suppliers for their 2000 payables. :p

    In any case, do you know the names ba of the purchasers and contact info? :)
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Originally posted by BadGiRL
    Now I really have a problem. I don't know how I will make a corporate profile when the division is not yet a year old.

    I presume your uncle's old company was in the same business, in which case his affiliation with that company will be your best credential. Establishing your own business after retirement is explainable and understandable, and if your uncle's reputation is good, he can even provide references. In the end, your company's "youth" should not be taken against you.
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    I have checked with the guys who run our coffee business. We sell to two supermarket chains - Rustan's and UniMart/Cash & Carry. We do not pay under the table although we sometimes give small presents during the Christmas holidays.

    These two chains ask for long payment terms (120 days), but pay promptly when due. There is no "lakad" required to get checks released.

    Periodic store visits are recommended, though. As you may know, supermarket retailing is at the end of the day a battle for good shelf space. Our competitors love to rearrange the shelves and we must play the game, too.
Sign In or Register to comment.