There are many differences between the way consumers buy and the way business buys. Even though they both use some similar methods the differences are important for successful business transactions.

Both consumers and business buyers shop, but good business buyers shop more and over a wider geographic area. Today, business buyers not only shop hundreds of miles away from their operations, they also travel to foreign countries to obtain the lowest cost sources.

Consumers shop for a short period of time. Good buyers may take days, weeks, or even months for major purchases.

Consumer buyers tend to be more emotional about their purchases. They are not as concerned about detailed specifications. They tend to pay little attention to payment terms if they have the cash or have a credit card with funds available. Good business buyers negotiate payment terms and either get longer time for payment or discounts for early payment.

Price is often of paramount importance to the consumer, whereas the good business buyer is more concerned about total cost than price alone. Business buyers realize that every penny they save goes directly to the bottom line of their organization’s financial statement.

Consumers usually accept and sign the sales order forms submitted by the seller whereas the business buyer submits his or her own order form or revises the terms and conditions submitted by the seller. The consumer often fails to read the fine print on the sales form. The good business buyer knows that the print must be read and understood before giving out an order or signing the supplier’s form.

The law views the business buyer as knowledgable about the products and services purchased and holds the buyer as being more responsible for accepting the terms and conditions offered by the seller. The consumer has more protection in this regard and can often escape from a contract made hastily.

Buyers for business obtain multiple bids, negotiate price, specifications, the delivery schedule, the payment terms, and various other factors concerned with total cost. Consumers are often only concerned with one or two aspects of the purchase.