BUYING AND SELLING
A buy-and-sell enterprise is nothing more than purchasing cheaply new or previously owned products that we all need, use or want, and reselling these same items for more than cost. The difference between what you paid and what you sold it for, of course, is your profit. Buying and selling for profit is nothing new. It has been around for thousands of years; the only difference is that the currency has switched from goats and bread to paper and plastic. With that said, however, there are two primary reasons why buying and selling has recently exploded from being the closely guarded secret of a few, to the popular occupation of hundreds of thousands of people worldwide, who are now buying and selling as their sole source of income. The first reason is the advent, wide acceptance and use of the internet, and the second reason is what I refer to as the new economy.
3. The Buying Process
3.1. Steps in the Buying Process
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Identify the Need – Determine what goods or services are required.
Example: Need for 10 metres of electrical cable for wiring.* -
Find Suppliers – Look for reliable sources of materials (shops, wholesalers).
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Obtain Quotations – Ask for price offers from different suppliers.
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Evaluate Quotations – Compare quality, price, and terms of payment.
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Place an Order – Prepare a purchase order specifying items and quantities.
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Receive Goods – Check items received against the delivery note.
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Inspect and Record – Ensure goods are in good condition and record them in the stock register.
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Make Payment – Pay the supplier as agreed.
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Store Goods Properly – Use safe storage to prevent damage or theft.