Analysis of the purchasing decision behavior of the cutting tools – distributor article | BJ Tool

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Analysis of the purchasing decision behavior of the cutting tools – distributor article

2019-05-20

The world-renowned cutting tool brand has developed this industry for more than 50 years. In addition to its profound development background and history, quality and reputation are also world famous. All over the world hope to get the agency or distribution rights of the world famous brands. Then, with the increasingly fine division of the world industry, the cutting tools are divided into mainstream markets and niche markets. The other cutting tool manufacturers are slowly catching up with the world famous brands, these new brands are also entering the market. Many agents or distributors are beginning to look these new brands that can be matched. For the dealer, they usually consider many factors, including the cutting tool itself, brand reputation, external environmental factors and market mechanism. And all these factors will affect their purchasing decisions, let us discuss it one by one.

Cutting tool itself

1. Cutting tool quality
The essence of cutting tools is based on quality, good tool quality can bring good reputation, reassurance by dealers, and peace of mind for clients.

2. Cutting tool life
Tool life is the key to the production efficiency, if the client is often reacting to a brand for poor tool life, the dealer responds to the cutting tool manufacturer. If the tool life does not improve, the dealer will lose confidence in the brand. If the tool life is good, the dealer will give priority to the client and establish a long-term cooperative relationship.

3. Cutting tool delivery
In the age of timeliness, the accuracy of the delivery time of cutting tools is very important. In order to gain the client trust, the dealer will strive for the fastest delivery to the client. Therefore, the delivery time of the cutting tool manufacturer will affect the agent willingness to purchase and cooperate.

4. Cutting tool applicability
The dealer is the communication bridge between the client and the cutting tool manufacturer. If the cutting tool manufacturer can provide professional technical support, the cutting tool manufacturer and the dealer work together to propose the most suitable cutting tool solution to the client, it will be beneficial to dealers to promote sales channel, brand marketing and provide comprehensive after-sales service.

5. Cutting tool price
The price of cutting tools is also important to influence dealers willingness to purchase and cooperate. Usually, dealers hold market information and price lists of various brands, and will carefully assess how much profit from trading in the tool can benefit from it. For profit-oriented dealers, cutting tool manufacturers can propose more profit margins and increase dealers willingness to purchase cooperate.

Brand reputation

1. Brand reliability
Brand reliability For dealers, in addition to the cutting tools itself, reliability is based on how cutting tool manufacturers manage dealerships and business strategies in different markets. If the cutting tool manufacturer opens up many dealers in the local market, it will disrupt the market, or the business strategy changes rapidly will also reduce the brand reliability. Conversely, effective management of dealer groups and clear business strategies can enhance brand reliability.

2. Brand Value
Regardless of how long the brand has been established, users will give each brand a different evaluation and awareness in the long run. Regardless of the new brand or the world famous brand, as long as the brand can play its value, the dealer will actively strive for distribution cooperation and actively promote the market and marketing the brand.

Environmental factors

1. Prosperity situation
When the overall environment is in a bad situation, it is afraid that the supply will be oversupplied. At this time, the demand of the client will be reduced, and the stocking volume of the dealers will also be reduced. When the economy is good, the supply is in short supply, the client uses a large volume, the dealers will also increase the stocking volume.

2. Order forecast
Regardless of how long the brand has been established, users will give each brand a different evaluation and awareness in the long run. Regardless of the new brand or the world famous brand, as long as the brand can play its value, the dealer will actively strive for distribution cooperation and actively promote the market and marketing the brand.

3. Customer relationship
Customer relationships will affect the dealers willingness to purchase and cooperate. Both the cutting tool manufacturer and the distributor have a good relationship and mutual trust, which contributes to the promotion and marketing of the brand and increases the local sales market share.

Market mechanism

1. Competitive mechanism
In the cutting tool industry, there are competitors competing and contesting each other. Through price competition or non-price competition, according to the rule of survival of the fittest, the dealers will analyze the pros and cons to determine the cooperation target.

2. Price mechanism
The price mechanism refers to the bidding strategy that affects the commodity in the process of market competition. In order to obtain more purchasing opportunities, the cutting tool manufacturer provides more favorable discounts or promotional programs to the dealers, so that the dealers have the price advantage to get the market share.

Conclusion

There are many factors to be considered in the procurement of cutting tools and cooperation decision-making by dealers. For dealers, the credibility of cutting tool makers may be their most valued. Dealers will want to secure their sales model and can invest more resources in developing markets and increasing market share. For cutting tool manufacturers, they will hope that the dealer have excellent sales ability, to ensure the safety of dealer sales channels, provide annual performance budget and target to dealers, so that both parties work together to complete the goal

If you have other ideas and suggestions, please feel free to communicate with Baoje Cutting Tools.

Reference material:
.Thesis - The Study of Investigating the Factors Influencing Business Purchasing Behavior of Cutting Tool Retailer - Author: Yu-Ting Yu

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Superior techniques, premium quality adherence.

BAOJE industrial Ltd. Co. is a leading manufacturer of high quality micro boring tools with 30 years experience. We focus on what you need and endeavor to research the best quality of tools for your industry. These are some patents which include CNC grinding tool machine, sectioning machine, precision boring tools along with toolholders to satisfy your needs.

Superior techniques, premium quality adherence.

BAOJE industrial Ltd. Co. is a leading manufacturer of high quality micro boring tools with 30 years experience. We focus on what you need and endeavor to research the best quality of tools for your industry. These are some patents which include CNC grinding tool machine, sectioning machine, precision boring tools along with toolholders to satisfy your needs.

Analysis of the purchasing decision behavior of the cutting tools - distributor article

2019-05-20T18:07:48+08:00 May 20th, 2019|