Need Your Help - Why Do You Buy What You Buy? (for biz)

[M.D. Holloway]

I have been doing this research for over 7 years - on why folks buy what they buy. I’m interested in understanding the selection criteria of things (materials, MRO stuff, components, software, etc…) for you business. If you do not buy anything for your job, take a minute and imagine what the criteria you would deem most important if you did have the opportunity to purchase something for the companies (your companies) benefit. Normally, I have the takers of this survey force rank the reasons – no ties. Unfortunately this site does not provide that level of sophistication but that’s OK! Pick you top 3.

I have done research into personal buying as well – but that gets rather complicated. For this let us just consider business buying. Thanks for your help on this.

[dhoward]

I've often found that when there are products competing for the same market, they are generally very similar in specification and performance. Pennzoil, Valvoline, etc for a Lubemaster example!
Once I have determined what product(s) fit my needs from a specification standpoint, A knowledgeable rep, and support staff come next. Reputation for going the extra mile when necessary, ranks very high in my book.
I've purchased over 100 million in computer and network equipment in the past 10 years or so.
I try to keep price out and value in.
Relationships are important and can increase value.

In my experience.

[lendaddy]

Size of hogs/shape of ass on sales girl.

[dhoward]

That too...

[lendaddy]

But seriously Lube, I buy based on my own research unless I have a salesman I really trust. Once he has my trust he can rob me blind for a good while before I'de notice.

[M.D. Holloway]

lendaddy - interesting, so when you say reasearch, what criteria? It would take some good work to understand the perfromance criteria of anything in particular and then you would have to make sure the fit is appropriate for your given application or requirement.

[Dantilla]

I am very value conscience.

Sometimes that means the lowest price, sometimes paying more for high quality.

[lendaddy]

I'm a pretty small place, so I'm not sure if we are thinking on the same level or not. I am talking machinery purchases, service contracts, consumable tooling , etc... When we need one of the above I/we spend a couple days/weeks researching known options (usually via the net) and away we go. Sure there are flaws to my method, but I'm not about to pay a purchasing consultant if you know what I mean.
AFAIC all salesmen will basically tell me their product is the best, so I really only need their specs and guarantees, then I'll decide who's best.

[M.D. Holloway]

Len - I understand. Small shops as well as large make important choices on what the spend. I know a company that almost went of business because they bought bearings made in China that were 4 times less and lasted that long. The indirect cost pools killed them. BTW - I would not use purchasing consultants. And I also agree, many sales people will always say their stuff is the best - it would be nice if they could actually prove it to you according to what you feel is important.

[sammyg2]

For me, usually the deciding factor on a purchase is boobs. Either on the sales girl or the commercial, that's what works

Seriously, I usually don't buy anything unless I have a decent bit of knowledge about it. If I don't know enough to make a decent decision, I do my homework. If I can get the same quality or same product anywhere, then price is the determining factor. That and boobs.

[oldE]

Mike,
There is a big difference in purchasing rational between people who actually use the goods/parts and those who authorize payment. In a small firm, this might be the same person. In a larger firm, there is a separation and the accountants 'win', for a while. Then the scenario of the 1/4 life/price bearings rears its ugly head.
The people who use and service machines will almost always value durability and ease of use. The bean counters just see the invoice and hear somebody tell them,"I can get those for you a lot cheaper."
Selling the product to firms at different points on the "use it-pay for it scale" requires utilizing different aspects of the product benefit profile.
Les

[LeeH]

Value. Who cares if it's "the best" if it costs four times as much. Who cares if it's the cheapest if it doesn't last.

[jim72911t]

Performance. The best is often times the least expensive way to go.

Here's an example:
I purchase tooling for a small machine shop. We use a crap load of 1/2" roughing end mills. (sorry for the technical jargon ) A couple of weeks ago, I bought some end mills that were about $30 each as opposed to the ones I usually buy, which are $47 each. The owner of the company suggested that I buy the cheaper ones, hoping to save a few $$. I understand that completely.

Anyway, we broke three cheapo end mills in an 18 hour period over the weekend. The more expensive ones usually last 50-60 hours, sometimes a lot longer. Do the math.

I ordered the more expensive ones today. Lesson learned, by both of us.

Jim

[M.D. Holloway]

One Saturday I thought I would give my Wife a break and take the kids grocery shopping. Got to Sams and filled the cart - included in the cart was orange juice. I bought the less expensive store brand. Got home and my Bride proceeded to dress me down...
"What is this?"
"Its OJ."
"It isn't Tropicana Low Acid No Pulp High Calcium!"
"That stuff is 5 times more expensive!"
"Thats what we drink - you can drink that swill."

I drove back to the store (in the 911 with the kids) and got the good stuff. She was right on many levels and it gave me yet one more reason to drive the 911 with the kids.

[dhoward]

I find that 'that swill' can be made much more palatable by the addition of vodka.

[Seahawk]

Originally posted by dhoward
I find that 'that swill' can be made much more palatable by the addition of vodka.

Damn near drinkable...


Honestly, I made a number of "best value" mistakes when I first bought my farm 11 years ago. As I gained more experience and began to understand the value on my time (amazing how much faster a 72'' mower deck will cut my yard, line and bank than a 42'' deck) I made more informed purchases.

A perfect example is tools, both gas and electric powered. When I saw the need for a gas powered pole pruner, I looked at Stil and was shocked at the price. I bought an Echo instead.

Nice little machine, but it only lasted two years...nine years later the Stil is still in the game.

I have a much better sense of value, cost and performance now.

[wludavid]

I buy the cheapest bottle of Scotch with a cork.

Seriously. I picked up my methods of research and buying from my dad, and one day when I was about 16 I accompanied him to the liquor store. I watched him look over the whiskey aisle for about 2 minutes and pick up a bottle. Since he'd never shown any particular brand loyalty, I asked why pick chose that one. Very simple, he responded, "it was the cheapest bottle with a cork. It can't be that bad, and I might find something I really like."

A few years later I realized that the same philosophy can be applied to most things I research and buy - low-end Harman/Kardon receiver (back when H/K was a parlor brand, not a Big Box commodity), bookshelf PSB speakers, low-end 700 MHz iBook, 20" Sony Wega TV - all the lowest price items of the high quality brands.

The idea behind that is the high-end makers are going to start building stuff around where the "knee" of the cost/performance diminishing-returns curve starts to get steep. If you pay for just the first bit of performance up that curve, I believe you're getting the best deal.

Sorry Lube. I couldn't figure out how that answer fit into your poll.

[red-beard]

Unfortunately - it's very price driven right now. I am having to address this since the quality/scrap/rework/warranty costs are too high.

[gr8fl4porsche]

I generally utilize one supplier over another due to service over cost. If they do what they are supposed to do - day after day - then I will buy from them even if they are not 'low'. But if a company is considerably less expensive than another and there service is ok but not great, then I will use them occasionally to save a few bucks. When the heats on and I really need to count on someone - I go to the company who is best, regardless of cost.

[WolfeMacleod]

For me, in the guitar industry, I only use the best quality components I can find for what I do. There are parts I can get for less than 1/2 the cost, even less that 1/3rd the cost, but I won't use them.
In one case, I use a magnet that costs 50 cents each. I can get a similar magnet for 4 cents each. Sure, they do the same thing. Same dimensions. They function nearly identical. The 50 cent magnet does what I want it to, while the 4 cents magnet only "almost does"~ The properties of the 4 cent magnet are slightly different...enough to matter.