Purchasing agent

“ The business of merchants, in foreign countries, is usually transacted by agents, called factors, or commission merchants, to whom goods are consigned to be sold, and by whom other articles of merchandise are purchased and returned according to order. Sometimes an agent, called a supercargo, accompanies the vessel ”

“ If the merchant has given to the agent corn, wool, oil, or any sort of goods, to traffic with, the agent shall write down the price and hand over to the merchant; the agent shall take a sealed memorandum of the price which he shall give to the merchant. ”

“ Such as are venders of goods and merchandise will not take the advantage of the scarcity of goods that may be occasioned by this association, but will sell the same at the rate we have been respectively accustomed to do for twelve months last past: and if any vender of goods or merchandise shall sell any such goods on higher terms, or shall in any manner or by any device whatsoever depart from this agreement, no person ought, nor will any of us deal with any such person, or his or her factor or agent at any time hereafter, for any commodity whatever. ”

“ Where the number of workmen living on the same spot is large, it may be thought desirable that they should unite together and have an agent, to purchase by wholesale those articles which are most in demand, as tea, sugar, bacon, &c., and to retail them at prices, which will just repay the wholesale cost, together with the expense of the agent who conducts their sale. ”

“ If an agent is authorized to sell goods, and in making a sale, is notified by the purchaser that the goods are purchased conditionally, in the absence of any special instruction limiting the power of the agent to sell conditionally, brought to the attention of the purchaser, the principal will be bound by the condition. ”

“ The average merchant in conducting his regular business, when waited upon by one claiming to be an agent of a manufacturer, places his order with that agent fully expecting to receive the goods. As the time rolls on the goods come according to the sample shown and the order given. ”

“ Some, however, among them, more sanguine and adventurous than the rest, availed themselves of their credit with the importers and wholesale dealers, for purchasing quantities much beyond the estimated demand in their own business. As the purchases were made in the first instance ostensibly, and perhaps really, for the legitimate purposes and within the limits of their regular business, the parties were enabled to buy without the condition of any deposit; whereas speculators, known to be such, are required to pay 2l. ”

“ As in every other branch of public service, successful purchasing depends primarily on exact information, relating in this case, to standards of utility of various articles, the present and the probable future state of the market, the exact condition of present supplies, the honest fulfillment of contracts. ”

“ Commission merchants receive and sell goods belonging to others for a compensation called a commission. A selling agent is a person who represents a manufacturing establishment in its dealings with the trade. The factory may be located in a small town, while the selling agent has his office and samples in the heart of a great city. As regards the quantity of goods bought or sold in a single transaction, trade is divided into wholesale and retail. The wholesale dealer sells to other dealers, while the retail dealer sells to the consumer—that is, the person who consumes, or uses, the goods. ”

“ The Factor.—Other types of middlemen are the manufacturer’s agent, who is a broker or sales agent, effecting sales usually by means of samples; and the factor or commission merchant who actually handles and sells the goods of his principal. ”

“ The merchant or manufacturer protects himself against his risk of loss by making another addition to the price of the goods he sells. Usually the goods pass through several hands; those of the jobber, the Western or Southern wholesale dealer, and the retailer, before they reach the consumer. ”

“ It is the duty of the seller to deliver the goods, and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale. Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions, the seller, therefore, must be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer must be willing and ready to pay the price in exchange for the possession of the goods. ”

“ The United States Agent and the chiefs shall have power to grant license to bring merchandise to the national payment ground for sale to so many traders as they may think proper for the interest of the nation. ”

“ It may happen that, at particular conjunctures, where the markets are overstocked, and there is a competition among the sellers, this may not be practicable; but in the general course of trade, the demand for consumption preponderates, and the merchant can with ease indemnify himself, and even obtain a profit on the advance. As a consumer, he pays his share of the duty ”

“ Retail dealers, selling the merchandise of others at prices prevailing at particular localities and times shall hand over to the wholesale dealers as much of the sale proceeds and profit as is realised by them. ”

“ As a matter of fact, the seller endeavours to transmit the burden to the purchaser, and the purchaser places it upon the consumer as opportunity may occur in relation to the general market situation all over the world. ”

“ The wholesale trade is conducted by three classes of persons: dealers or merchants, commission men, and brokers. The dealer is one who buys the goods outright and takes his own risk on making a favorable sale to the retailer. The commission man is one who receives the goods, sells them at such price as he may be able to obtain and remits to the seller the amount obtained less expenses and his commission. The broker is a man who effects a sale without coming in contact in any way with the materials sold. ”

“ The general retail merchant is compelled to transact business with a great number of wholesale dealers, to whom he pays cash in hand, or agrees to pay it at some future period, say, in four, six, nine, or twelve months. ”

“ A profit quota is sometimes assigned to each department, for which the buyer is responsible. In other words, in the management of the buying and selling activities and therefore in the control of his merchandise stock the buyer is supreme, subject to the general limitations placed by the financial resources at his disposal. Under the control of the buyer, therefore, will be stock clerks, the clerks which mark and re-mark the merchandise, and the sales force. ”

“ He should furnish a complete statement of stock to be purchased and hand the same to the office a reasonable time before going on a purchasing trip, and must have the sanction of the office to the same. Buyers are expected to respect the limits placed and not to exceed the figures sanctioned; but if the market is showing any special lots of goods which in his judgment should be bought, or he is confident that a saving will be effected [Pg 31] on goods which are likely to rise in value by buying heavier, considerable latitude is permitted. ”

“ A large force of experienced buyers are constantly employed, who visit the world's markets at regular intervals in search of new goods. The aim is to save all intermediate profit, by buying direct from the makers, making direct connection between the manufacturer and consumer, and thus getting as near as possible to the actual cost of production. ”

“ It is no more 'an account,' and no more connected with 'the trade of merchandise,' than a bill of exchange or a contract for the rent of a house, or the hire of a carriage, or any other single transaction which might take place between individuals who happened to be merchants. An entry of it on the books of either could not change its nature, and convert it from an insulated transaction between individuals, into an account concerning the trade of merchandise, between merchant and merchant. ”

“ There is no fixed price for any article, and a dealer would be disappointed if you purchased at the first figure demanded, because it would prevent him from showing his ability at negotiation. Residents tell you that you must not pay more than half the price asked, and must dicker until the merchant comes down to your figure. ”

“ We were told the business could not be given to us, no matter how advantageous our terms might be, and our inference was that the object of the trust was not to get the material at the lowest price, but to give the business to a favored firm without competition.
This large contract naturally excited much interest in the trade and great efforts were made to ascertain its terms. The generally accepted theory was that the firm supplied the material as wanted and the price for each month's deliveries was fixed by the average of the market for the last ten days of the month. ”

“ The opening of bids and awarding contracts on sample requires actual acquaintance with the market, and experience in judging of the quality of goods of every variety. He needs the experience and judgment of a first-class country merchant. ”

“ The circumstance I here have in my eye, is the difference I find in the effect of competition, when it takes place purely among merchants on both sides of the contract, and when it happens, that either the consumers mingle themselves with the merchant-buyers, or the manufacturers, that is, the furnishers, mingle themselves with the merchant-sellers. ”

“ Control of Merchandise Movement.—The beginning of merchandise control is the fixing of the sales quota, that is, the making of an estimate of sales for the next period. Without a definite goal to be aimed at control is impossible. Buying and finance are dependent on it. A knowledge of the stock on hand at any time is needed to determine the buying requirements. Even in a small business the inventory can at least be estimated on the basis of past performance as to percentage of gross profit and therefore the percentage of cost of goods sold. ”

“ The credit usually given by one tradesman to another, as particularly by the merchant to the wholesale-man, and by the wholesale-man to the retailer, is such, that, without tying the buyer up to a particular day of payment, they go on buying and selling, and the buyer pays money upon account, as his convenience admits, and as the seller is content to take it. ”

“ The seller, with silken manners and brazen countenance, will always name a price four times as large as it should be. Then the real business begins. The buyer offers one half or one fourth of what he finally expects to pay ”

“ Some one ascertains the price the worker is paid; another inquires of the merchant the amount he will receive for it; and, in the hope of extracting a commission from the proprietor of the shop or his purchaser, all are eager to advise the customer upon the merits of the article he may have chosen or the sum he may have offered. ”

“ In such sales the goods are delivered to the buyer, but the title is retained by the seller until payment.
The capacity to buy and sell is regulated by the general law concerning the capacity to contract, transfer and acquire property. When necessaries are sold and delivered to a minor, or to an insane or drunken person, or to a married woman, who is lacking in mental capacity to make a contract, he must, by the general Sales Act, pay a reasonable price therefor. ”

“ If a buyer, whether he be retailer, jobber, converter, or what not, wishes to secure goods of a certain kind, he would have a very difficult task if he had to canvass the entire market, and ascertain what was being offered. ”

“ He comes more directly in contact with the buyer; he knows better to whom credit can safely be given, and is prepared to risk credits that the manufacturer would often refuse; he is well posted in railway and shipping rates and conditions, understands the peculiarities, practices, and requirements of particular markets, and has all other necessary commercial information, including freights and tariff duties, at his fingers’ ends.” Surely the functions thus suggested are sufficiently important to keep specialists employed, with profit to society as well as to the individuals engaged. ”

“ In regard to the latter class of goods, it is a matter of common knowledge that there has been an increasing tendency of late years to eliminate the middleman, and establish direct trading between producer and consumer. Just as the small shopkeeper will purchase from the manufacturer, and avoid the wholesale dealer, so, also, there are individual householders and others who eliminate even the shopkeeper, and deal direct with advertising manufacturers willing to supply to them the same quantities as could be obtained from a retail trader. ”

“ As a scientific salesman, do not forget to consider the buyer. He is buying scientifically. He is suspicious. Every one is trying to drive [188] a very close bargain. He tries to make you yield on price, to make some concessions on payments, to give special privileges about returning goods, etc. Beware of all these tactics. Here, again, you must consult frequently, and with confidence, your sales manager. He knows the tricks of your particular trade, and he will be able to give you proper coaching. ”

“ The merchant pays a duty upon importation, which he does not receive again till he sells the commodity, perhaps at the end of three months. He is therefore equally entitled to a profit upon that duty which he pays at the customhouse, as to a profit upon the original price which he pays to the manufacturer abroad ”