Business User Markets
Besides selling final products and services to supply chain companies, several additional user markets also make purchases either for their own consumption or they buy with the intention of redistributing to others. In these purchase situations the buyer generally does not radically change the product from its form when it was purchased from a Product Manufacturer. While technically these markets are also part of the supply chain, members of the business user market do not, in most cases, engage or directly assist in production activities.
| Market | What They Do | Considerations When Buying | What They Buy |
|---|---|---|---|
| Government | Made up of Federal, State, Local and International governments. They use purchases to assist with the functioning of the government that may include redistributing to others. | Mostly require suppliers to be approved, meet specifications and to bid for purchases. | Defense equipment, heavy equipment for public works projects, office supplies, pharmaceuticals, etc. |
| Not-For-Profit | Organizations whose tax structure precludes earning profits from operations and whose missions tend to be oriented to assisting others. | Look for purchases that will fit within tight budgetary restrictions and also within the mission of the organization. | Office equipment and supplies, office rental, professional services, etc. |
| Reseller | Also called distributors, these companies operate in both the consumer and the business markets. Their function involves purchasing large volumes of products from manufacturers (and sometimes from other resellers) and selling these products in smaller quantities. Includes wholesalers, retailers and industrial distributors. | Seek products that are of interest to the reseller’s customers. Other issues include how delivery is handled and whether the supplier offers incentives to help the reseller promote the product. | Consumer and industrial products to be redistributed to other businesses and consumers. |