BUYING AND

SELLING THE
PRODUCT
UNIT II: THE IDEAL ENTREPRENEUR
BUYING THE PRODUCT
● The seller or retailer must develop a sound buying and
selling program to ensure a profit and good service.
● The buying program should be based on the principle:
- Buy goods that will meet the needs and
satisfaction of the consumers or buyers.
- What does my customer need?
STUDY THE PRODUCT THAT YOLU THINK IS IN DEMAND

The list can be made from the stock of information he/she has taken from
different sources:

1. Inquiries made by his/her sales clerk to customers.

2. Stock record which shows the items that are easily sold out.
3. The sales of different items and merchandise with the highest
sales.
4. A customer survey conducted by the store itself.
5. Product most often sold by competitors.
6. Information from manufacturers and wholesalers with direct
contact with other retailers.
STUDY THE PRODUCT THAT YOLU THINK IS IN DEMAND

SOUND BUYING means that the seller or retailer buys

his/her goods from the right sources with the right quality
and quantity, and at the right time at the right price.

RIGHT QUALITY means a reputable or established

manufacturer, producer, or wholesaler.

RIGHT SOURCES means can be trustworthy and have

honesty and integrity.
STUDY THE PRODUCT THAT YOLU THINK IS IN DEMAND

RIGHT QUALITY is usually dictated by price.

HIGH QUALITY the product is bought at higher prices

than the low-quality ones.

RIGHT QUANTITY depends on how much is needed by the

customer at one time or at a certain period of time.

RIGH TIME enables the seller or retailer to buy goods when there is a
great supply from the manufacturers, producers and retailers.
STUDY THE PRODUCT THAT YOLU THINK IS IN DEMAND

An abundant supply can lower the prices especially

when the demand is low.

Proper care and proper storage are important to

preserve the quality of the products.
STUDY THE PRODUCT THAT YOLU THINK IS IN DEMAND

“A competent retailer should be a competent

buyer.”
“SALESMANSHIP is the art of selling.”

- selling using one’s knowledge, enthusiasm, and

persuasion.
- art that requires knowledge of the product and
the consumer.
- Good human relations and traits like patience,
enthusiasm, and courtesy.
There are 4 qualities that make a good salesman.

1. GOOD HEALTH
2. GOOD CHARACTER
3. ADEQUATE KNOWLEDGE
4. PLEASING PERSONALITY
There are 4 qualities that make a good salesman.

1. GOOD HEALTH
2. GOOD CHARACTER
3. ADEQUATE KNOWLEDGE
4. PLEASING PERSONALITY
GOOD HEALTH
● The salesperson must be physically and mentally fit to
carry out his/her duties.
GOOD CHARACTER
You should have:
● Initiative (working without being told).

● Cheerfulness ( facing customers with a smile.)

● Courtesy (treating each customer with due

respect)
● Honesty (does not cheat on employer and

customer)
● Aggressiveness (can easily persuade

customers to buy.)
ADEQUATE KNOWLEDE
● Knowledge allows you to communicate with
your customer, co-workers, and employer.
● You should have the technical knowledge of
the job.
● You should know the characteristics of the
merchandise you sell, the different types of
customers, business market conditions,
trends, and prices.
PLEASING PERSONALITY
● A pleasing personality can easily attract
people.
● In retailing, it can easily attract customers.

“Your Personality is your greatest asset or your

greatest liability, for it embraces everything that
you control: mind, body, and soul.”
COMPUTING THE PRICE OF THE PRODUCT
The profitability of the store is greatly affected by
the pricing of the product.

The are several components of the price. These

are:
COMPUTING THE PRICE OF THE PRODUCT
The are several components of the price. These
are:

1. Cost – this refers to the part of the price that

covers the product. It is the amount paid for the
merchandise.
COMPUTING THE PRICE OF THE PRODUCT
The are several components of the price. These
are:

2. Markup – this refers to the additional expenses

involved in selling the goods such as
transportation, taxes, and others.
COMPUTING THE PRICE OF THE PRODUCT
The are several components of the price. These
are:

3. Profit – this refers to the amount added to the

item cost.
COMPUTING THE PRICE OF THE PRODUCT
ACTIVITY 2:
Form groups of three members each.

Create a video advertisement staring the “salesperson” showcasing

the product being sold. The video should not be as long as 30
seconds. Use video editing software to add effects and sound to the
video.

Submission: February 21, 2023 (Tuesday)