The 6 Steps of the Business Buying Process [Explained]

Business Buying Process

The business buying process refers to a series of steps companies used to take to purchase a product. The first step includes the recognition of the problem, followed by determining buying specifications, identifying suppliers, selecting the supplier, making a purchase decision, and the supplier’s performance evaluation.

The buying process may differ from company to company. However, most companies follow the following six steps process to buy products. Let’s understand each of these steps and how you can buy a product for your company.

Recognize a Need or a Problem

The first step in the business buying process is the recognition of a need or a problem the organization is facing. Organizations do not step into purchase decisions unless they realize they have a problem and that a new product will fix that problem.

Your company is performing activities manually, and it realizes the need for computers and software to make activities faster and smoother. Or, there is old furniture, and new furniture is required in the organization.

In this first step, you should identify the problem your business is facing, why the problem has occurred, how the problem is affecting the organization, and why it is necessary to resolve.

Determine the Product and Buying Specifications

Once you recognize the problem, the next step is to determine the product to resolve the problem. For example, there is a need for new furniture that will replace the old furniture and offer comfort to employees.

And, after determining the necessary product it is time to determine the buying specifications such as price, features, quality, quantities, and terms and conditions.

Usually, the nature of the problem itself decides how many and what types of products your business should purchase. Here, you should be sure of which and what types of products you need so this will help to evaluate the suppliers.

Also Read: Consumer Buying Process

Search Suppliers

This is the third step of the organizational buying process where you should search for suppliers. There may be different suppliers in the market who can solve your furniture problems. Get more information about them through buyer’s reviews, their websites, and face-to-face conversations.

And, make a list of suppliers who can provide goods or services according to your product specifications and mutually agreed terms and conditions.

Evaluate and Select a Competent Supplier

Once you have collected the information about the suppliers, it is time to evaluate them in terms of your buying specifications.

In addition, other criteria such as past performance of suppliers, product price & quality, punctuality, regularity, quality of service, delivery time, terms of delivery, etc. can also be adopted while evaluating suppliers.

After evaluation, select a supplier who best meets your criteria. The supplier should be the most reliable and competent who agree to your company’s requirements.

Purchase Decision

This is the moment for which businesses perform all the above steps of the buying process. After evaluation and selection of the best supplier, companies make a buy from that supplier.

Evaluate Supplier’s Performance

This is the last step in the business buying process, where companies evaluate the performance of the product and supplier. They assess the supplier as to whether or not he met their expectations.

Evaluation can also be done in terms of the quality of the supplier’s service, efficiency, punctuality, etc. When companies are satisfied with the supplier, they may make a decision to repurchase from the same supplier and vice versa.

Read Next: Types of Products (Consumer and Business)