6.1 Purchasing powerVOCABULARY Online trading 1 What does the word quality mean to you? 2 Read Peter Drucker definition. Do you agree? Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality. Peter F. Drucker, Management guru 3 Do you ever use eBay or a similar online trading place? Why? /Why not? 4 These items from an online feedback page describe buyers and sellers experiences. Explain what each underlined phrase means. O Item exactly as described. Highly recommended seller. You should buy from this seller. http:/feedback.onlineauction.com 1 Great buyer! Very prompt payment. Thanks. 28-Mar-10:15 2 Beautifully packaged and goods in mint condition. Would do business again. 27-Mar-10:05 3 A1! Efficient service and swift delivery. Pleasure to do business with. 25-Mar-13:47 4 Slight delay in despatch , but great communication. 21-Mar-12:11 5 Smooth transaction. Thanks. 15-Mar-08:08 6 Unreliable! This is the second time I have received goods not as advertised. 10-Mar-11:30 7 Item a bit marked but very reasonably priced. Saved $. 28-Feb-20:40 8 Goods damaged in transit. Poor packing for high price. 20-Feb-14:25 9 Beware! Sold me a camera that wasnt in stock. 16-Feb-21:14 5 Write feedback for the following two online trading experiences.1 John buys some jewellery for a friends birthday which is in two days time. The seller promises it will arrive the next day and it does. John writes about the seller.2 Freda sellers a tennis racquet that she bought but never used. The buyer pays immediately, but when it is delivered claims it is second-hand and posts negative feedback. Freda writes about the buyer.SPEAKING Managing suppliers6 Look at the following supplier-customer pairings. In which case would you expect the relationship to be based on: a a close working relationship? b price?1a camera manufacturer and electrical goods retailer 2 a pharmaceutical company and a hospital3 a haulage (delivery by truck) company and a mail-order clothes retailer 4 a maker of nuts and bolts and a helicopter manufacturer 5 a maker of motors and a helicopter manufacturer7 Complete this questionnaire from a business magazine to find out your attitude to suppliers. Compare your answers with your partner.Shall we do business?How do you treat your suppliers? Answer our short survey.1 When it comes to negotiating prices with a supplier, its best to a be as open as possible about each others costs and margins b agree a price youre both happy with. c squeeze them as hard as you can to get the best price2 When renewing contracts a try to keep your suppliers and build a long-term relationshipb renegotiate terms that are agreeable to both of youc force suppliers to re-tender for the contract each year3 When paying suppliers a pay them promptly when you receive the invoice b be sensitive to their cash needs and the contract each year c wait until the first payment reminder arrives before paying them.4 When developing new products a always involve your supplier-they can help with development and marketing b consider how your suppliers can help to share the cost of development. c keep your developments secret and never trust your suppliers.5 Think of your suppliers as a an integral part of your business. b a business partner. c just another company, with its own interests and concerns.Now check your answers on page 127.READING 1 Discuss the following questions.1 How much of your food shopping do you do at supermarkets? Why?2 Are supermarkets in your country squeezing smaller grocery shops out of the market? Is this a bad thing or a natural development?2 Read through the text below quickly. What is the problem for suppliers of big supermarkets?3 Put one word in each space to complete the text.How the supermarkets are squeezing their suppliersThe power wielded by the big supermarkets is becoming a source of concern in many countries. On the (0) one hand, their domination of the market is forcing smaller food retailers (1)_of the market; on the other hand, the way that they treat (2)_suppliers is now attracting the attention of regulators and g