- High ethical standards
- Good analytical skills
- Strong communicator with good listening skills
If you've given this section on Purchasing Agents a close reading, it should come as no surprise to you when we suggest that high ethical standards are critical for the people who hold these influential positions in a firm. Imagine the responsibility that comes with such buying power and the ability toward contracts that represent huge sums of money. Purchasing agents are under incredible pressure from agents, salespeople, representatives, and vendor executives. There may be offers of kickbacks, special favors, and more frequently, just simple requests for you to overlook something. In keeping with the honesty with which we have tried to present the options available to math majors in this book, we want to issue a stern warning that if you decide to enter this field, you must make your ethical standards clear and out in the open to everyone, including your colleagues and representatives of vendor firms. The field is full of true stories of talented people who've lost their jobs because they thought they could bend the rules. Don't be one of them.
An analytical view is also a sought-after skill. Because purchasing professionals spend much time analyzing technical data in suppliers' proposals, making complicated buying decisions that cost large sums of money, they must be comfortable with complex data and have the ability to see that data from a number of perspectives. In many cases, analysis comes down to the ability to creatively employ a variety of perspectives on a problem in the anticipation that one of these viewpoints will suggest a solution.
Ethics and analytical skills are not the only important personal qualifications. Purchasing professionals are valued for their ability to communicate clearly and effectively. This is an area where "No" means "No" and where needs must be clearly articulated. Purchasing agents work closely with their vendors and develop strong business relationships. Consequently, language is critical and there can be no suggestion of promises when promises are not intended. So your ability to communicate well will be an important hiring criterion. You may want to polish your interview skills and refer to the opening chapters of this book.
Personal strength goes hand in hand with excellent communications and high ethics. Employers look for job candidates who know who they are, what they want, and how they best function effectively. A positive self-image and a preference for variety challenge, and professional growth will be some of the characteristics being looked for in any interview situation for purchasing jobs.
Earnings for Retail Buyers and Buyer/Merchandising Trainees in 1997, buyers averaged $33,200 per year. To amplify that figure, the middle 50 percent of earners in this category earned between a low of $23,300and a high of $45,900. The lowest 10 percent of earners were making less than $18,400 while those at the opposite end of the spectrum were earning more than $63,000.
If you are in a trainee role, your salary is apt to be somewhat less than designated assistant buyer or assistant merchandise manager. Depending upon the employer's size (in terms of sales volume) and number of employees, you could expect a salary range of $21,000 to $24,000. Promotions out of the trainee role will bring a marked change in your pay. It's also important to note that benefits in these positions tend to be very competitive, and benefits package can add up to one-third of your salary in value. You may not realize the importance of your benefit package until you visit an emergency room or have major dental work done, but if that should happen, you'll begin to discover the "hidden income" of your benefit package.
Earnings for Sales Representatives Sales representatives' earnings offer the entry-level graduate the highest possible earnings available with a college degree, with a few exceptions (of even better salaries!) for some technical majors. High earnings are attractive to many students who graduate with some debt burden and a strong motivation to begin to live on their own and make a life for them.
A recent survey by the Darnell Corporation reports that today's salesperson earns about $36,000 in an entry-level job. Intermediate level sales professionals average about $46,000, and senior sales positions can easily exceed $63,000. An additional 30 percent of those incomes are given out in benefits.
Positions in selling pay a salary, a commission, or a combination of the two. As an entry-level salesperson, you will probably be more attracted to a salaried selling position. It seems less risky and seemingly puts less responsibility on you to produce than a commission system does. Straight salary plans work best for employers when it is difficult for management to determine which person on the staff actually made the sale or when the product involved has a broad, cyclical sales pattern, which would leave the sales staff with virtually no income during the slow periods if commissions were involved.
Sales professionals who have gained skills and confidence in their abilities are often more attracted to commission plans. Commission plans offer them unlimited income if they are successful. Straight commission gives the greatest incentive to salespeople while maintaining a predictable sales cost in relation to sales volume. Two factors working against straight commissions are 1) high turnover and burnout of sales staff and 2) a sales process tainted by the need of sales personnel to "move" product to pad the salespersons paycheck regardless of a customer s true need for the product or service, consider compensation plans carefully, regardless of your financial needs. It can be very disheartening to leave a position because of a disagreement over the pay arrangements when a little forethought might have anticipated problems.
Combination plans exist with fixed salaries and incentive features added on. This builds continuity in the sales force, yet allows superior sales staff to shine, and it encourages everyone to develop more business.
The bouquet of roses of each pay scheme has its own thorns. A straight salary job cannot reward superior achievement, and that may grow to be frustration if you are exceptionally successful in your position. If you expect to be the best you can be, shouldn't your paycheck reflect that? With straight salary job, you and the poorest performer take home the same paycheck!
Commission rewards ability and performance, and that can be attractive to the confident sales pro. However, be sure you understand what the minimum performance levels are, how much you need to do to earn your commission, and how feasible those goals may be. What is the waiting period, following a successful sale, before you receive your compensation? Occasionally, when commission salespeople are "too" successful, an organization will re-divide their territory and add sales staff The philosophy behind that move is that if one individual can do so well, there may be even more opportunity if additional sales staff are employed. However, for the successful salesperson, this only means less territory and much harder work to realize the same income as before.
Commission is not as risky as most graduates think. If (and this "if" is important) the organization that hires you is spending money and time on your training, its managers do not want to see you fail and are taking steps to ensure you succeed. These compensation plans are based on experience born of what past salespeople have done and what incentives they needed to-do it. There is no success if salespeople drop out because they can't make any money. The organization would suffer and, ultimately, fail.
Earnings for Purchasing Agents
This is a well-paid profession with median annual earnings averaging about$33,200 in 1996 as reported in the last edition of the Occupational Outlook Handbook. The average annual salary for purchasing agents and contract specialists in the federal government were $28,700 and $51,110 respectively because of the nature of the firms they work in (size, number of employees, and income production), these positions would, in almost every case, receive excellent benefits packages, including medical, dental, life, and health insurance, vacation and sick leave. It is not uncommon in the profession to also receive case bonuses based on firm performance.
Retail Buyers and Buyer/Merchandising Trainees
This employment group is expected to continue to grow as many job openings are created each year. At least for projections through the year 2006, additional openings will grow faster than all occupations because the growth in population overall creates retail demands. Additionally, there is significant turnover in these fields as people transfer to other occupations or use their skills to relocate.
The variety and scope of retailing today is obvious to us all. Disposable income is increasing among the middle and upper middle classes, and people are constantly seeking retail outlets that offer the mix of goods they want. As the largest segment of our population, the "baby boomers," reach their peak earning years, demographics suggest an increasing demand for retailing services and the management staff to direct those initiatives.
