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.
1. INTRODUCTION TO BUYING AND SELLING
Learning Objectives
By the end of this chapter, the trainee should be able to:
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Define buying and selling.
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Explain the importance of buying and selling in business.
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Identify the roles of buyers and sellers.
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Explain how buying and selling relate to the electrical trade.
1.1 Meaning of Buying and Selling
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Buying is the process of obtaining goods or services in exchange for money or other means of payment.
Example: An electrician buys cables, sockets, and switches for installation work. -
Selling is the process of transferring goods or services to another person in exchange for money.
Example: A technician sells electrical services to a client after wiring a house.
1.2 Importance of Buying and Selling
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Satisfies human needs – Consumers get what they need (e.g., lighting, wiring).
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Creates employment – Shop attendants, electricians, and suppliers earn income.
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Encourages production – Demand for electrical items encourages manufacturers to produce more.
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Facilitates exchange – Goods and services move from producers to consumers.
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Promotes business growth – Buying and selling increase profits and market expansion.
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Improves living standards – Provides access to quality goods and services.
1.3 Roles of Buyers and Sellers
| Role | Buyer | Seller |
|---|---|---|
| 1 | Determines what to buy | Provides the needed goods/services |
| 2 | Compares prices and quality | Sets fair prices |
| 3 | Pays for goods/services | Receives payment |
| 4 | Provides feedback | Maintains customer relations |
1.4 Relevance to the Electrical Trade
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Electricians must buy quality materials (cables, switches, bulbs).
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They also sell their skills and labour to customers.
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Proper buying and selling ensure profitability, safety, and customer satisfaction.
Summary
Buying and selling are essential in all trades, including electrical work, as they connect producers, traders, and consumers.
Review Questions
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Define buying and selling.
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State four importance of buying and selling.
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Describe two roles of a buyer and two of a seller.
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Explain the importance of buying and selling in the electrical trade.