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Wholesale Buyers purchase merchandise or commodities (items of commerce) directly from manufacturers, growers, or other wholesale firms for resale to retail firms and, occasionally, to other wholesale firms.

JOB DUTIES

Wholesale Buyers may:

Determine the minimum inventory needed to fill current and future retailers' orders promptly

Collaborate with retail buyers to forecast changes in consumer preference

Inspect merchandise or commodities offered for sale and interview vendors

Analyze past buying trends, sales records, and price and quality of goods

Select and order goods which are consistent with quality, quantity, specification requirements, and other factors at the most favorable price

Prepare or supervise preparation of purchase orders

Arrange transportation of purchases

Authorize payment of invoices or return of merchandise

Price items for resale

Conduct staff meetings with sales personnel to introduce new merchandise

The equipment, and work aids used may include:

OCCUPATIONAL SPECIALTIES

162.157-018 WHOLESALE BUYERS purchase merchandise or commodities (items of commerce) directly from manufacturers, growers, or other wholesale firms for resale to retail firms and, occasionally, to other wholesale firms. Wholesale Buyers may specialize in the purchase of a particular type of commodity or merchandise such as agricultural products, livestock, apparel, or furniture.

162.157-022 ASSISTANT BUYERS aid buyers by performing routine follow-up duties such as verifying the quantity and quality of stock received from manufacturers, authorizing payment to vendors, and approving advertising copy for newspapers.

In addition to learning about these specialties, you may also find it helpful to explore the following Career Exploration Scripts:

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WORKING CONDITIONS AND REQUIREMENTS

Wholesale Buyers might work under the general direction of a merchandise manager. In turn, merchandise managers might supervise assistant Buyers and one or more clerks who perform the routine aspects of the work.

Wholesale Buyers have frequent contact with manufacturers' representatives and retail buyers.

Wholesale Buyers often operate under great pressure in a highly competitive environment. Their work can be stressful, but many Buyers feel that the excitement of the job compensates for the emotional strain.

Wholesale Buyers generally work in comfortable, well lighted and ventilated offices. However, their work may also take them to warehouses, factories, stores, and other locations.

Wholesale Buyers often work long, irregular hours, averaging more than 40 hours per week. They must travel a lot to attend special sales events and conferences. Most Wholesale Buyers spend several days a month on the road.

Wholesale Buyers may join professional associations such as the National Association of Wholesaler-Distributors, and must pay periodic dues.

You Should Prefer:

• Activities concerned with the communication of data and information

• Activities which bring recognition or appreciation from others

You Should Be Able To:

• Communicate effectively, both orally and in writing

• Make decisions based on personal judgment and logical reasoning

• Solve basic math problems quickly and accurately

• Deal effectively with all kinds of people

• Negotiate with and persuade people

• Direct/control/plan an entire activity or the activities of others

• Perform a variety of duties which may change often

• See detail/errors in numbers/spelling/punctuation

Math Problem You Should Be Able to Solve:

If you estimate a 5% increase in demand for a certain product and last year you sold 15,000 units, how many units can you expect to sell this year?

Reading Example You Should Be Able to Read and Comprehend:

The law of demand formally describes the rationing effect of prices. It says that other things being equal, more items will be bought at a lower price than at a higher price.

Writing Example You Should Be Able to Produce:

You should be able to write a report, for your files, explaining any mistake that you might have made in estimating demand so you can avoid it next time.

Thinking Skill You Should Be Able to Demonstrate:

You should be able to view market trends and then estimate the upcoming demand for your products.

An increasing number of employers prefer applicants who have a college degree. Although courses in merchandising or marketing may be helpful, they are not essential for obtaining a position in this field. Most employers take college graduates from any degree area for trainee programs which combine classroom and on-the-job training.

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EDUCATION AND PREPARATION OP PORT UNITIES

NOTE: On-The-Job Training provided by the employer and a High School Diploma or Equivalent or with specific vocational education courses or a Bachelor's Degree (four years of study beyond High School) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in this Career Exploration Scripts:

***SCHOOL SUBJECTS***

0600 BUSINESS , 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 1100 ECONOMICS , 2200 MATH

***VOCATIONAL EDUCATION PROGRAMS***

There are no Vocational Education Programs related to this Career Exploration Script.

***POSTSECONDARY PROGRAMS***

093 MARKETING & PURCHASING

Programs in Marketing and Purchasing provide opportunities to gain the knowledge and skills needed for managerial employment in activities that contribute to the exchange of goods and services. Marketing functions include buying, merchandising, advertising, selling, transportation and distribution, storage and finance, and market research. Individuals who teach Marketing and Purchasing at the secondary level must have a Michigan Teaching Certificate.

Courses vary from school to school but may include:

Search for a College and/or Instructional Program

***APPRENTICESHIP OPPORTUNITIES***

There are no Apprenticeships related to this Career Exploration Script.

***MILITARY TRAINING PROGRAMS***

There are no Military Programs related to this Career Exploration Script.

E-Learning Courses and Programs

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OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY

Experience in this field can be obtained through postsecondary education programs in marketing and purchasing.

School-to-Work opportunities include:

informal apprenticeships

mentorships

job shadowing experiences

touring a local Wholesale Buyer employer

internships

volunteer work with a Wholesale Buyer employer

community service work with an agency

A common method of entering this field is through direct application to employers. Also, many persons who gain experience in merchandising and the wholesaling business through related jobs are able to transfer into buyer positions. College placement offices, professional associations, local offices of Michigan Works!, and newspaper want ads may provide job leads.   In addition, you should access and search the Internet's on-line employment services sites such as: 

  You should also enter an electronic resume on these on-line services.

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EARNINGS AND ADVANCEMENT

Earnings of Wholesale Buyers vary depending on the amount and type of product purchased, the employer's sales volume, and the Buyer's seniority. Buyers working for large wholesale distributors are among the most highly paid Buyers.

Nationally, recent graduates of bachelor's degree programs in buying and merchandising received average starting salary offers of $42,960 per year (early2006). The average annual salaries (mid 2006) of all Buyers, both beginning and experienced, ranged from $46,800 (for Buyers who purchase readily available items from local sources) to $58,700 (for Buyers who purchase highly complex and technical items that may have to be custom designed and manufactured). Some highly experienced Buyers earned as much as $128,300 or more per year (mid 2006). The median yearly earnings of "all" workers in the U.S. were $33,852 in 2005.

In Michigan in mid 2006, Wholesale Buyers both beginning and experienced earned average annual salaries of $44,700, while Wholesale Buyers purchasing highly complex, technical items averaged $69,800.   In addition to regular salaries, Buyers often earn cash bonuses based on performance.

Wholesale Buyers usually receive paid vacations and holidays, and group health and life insurance.   They might also receive retirement plans, profit sharing and stock options, and discounts on merchandise.

Most trainees in this field begin as assistant Buyers, checking invoices on merchandise received and keeping account of stock on hand. After approximately one year on the job, assistant Buyers may advance to Buyer positions. Some Buyers receive advancement in the form of higher pay as they become responsible for larger and more complex purchases.

Experienced Buyers may also advance to merchandise manager or wholesale establishment manager positions, with responsibility for determining the mark-up and mark-down percentages needed to ensure profits, the amount of merchandise to be stocked, supervision of Buyers and other workers, planning of sales programs and promotions, and coordination of day-to-day wholesale operations. These positions require experience, the ability to formulate policy, and other supervisory and managerial skills.

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EMPLOYMENT AND OUTLOOK

There were about 156,300 Wholesale Buyers employed nationally in 2005.   Employment is expected to grow more slowly than the average for all occupations through the year 2014.

Although Wholesale Buyers worked in all parts of the country, most were employed in major metropolitan areas where wholesale establishments are concentrated.

Consolidation among wholesale distributors has left the remaining firms larger and, therefore, in a stronger market position. These bigger companies, however, tend to need fewer employees such as Buyers, due to more efficient operating methods. As companies have merged, computer systems have become more important in expediting the ordering, delivery, and handling of business inventories.   Customized computer software developed by food and drug industry wholesalers allows automatic reordering by linking Buyers' inventory systems with wholesalers' computers. This up to the minute reordering allows Wholesale Buyers and distributors to control their inventories, thereby ensuring cost-effective operations.  The industry distributions for Wholesale buyers looked like this:

There are approximately 5,625 Wholesale Buyers employed in Michigan . The majority worked in urban areas. Most Wholesale Buyers were employed by durable goods, suppliers of industrial machinery, motor vehicles and related equipment, and electrical goods. The primary nondurable goods supplier employing Wholesale Buyers was the grocery sector.

Employment of Wholesale Buyers is expected to grow about as fast as the average for all occupations through the year 2012. An average of 170 job openings is expected annually, with 150 due to growth and 20 due to replacement of those who retire or leave the labor force for other reasons.   Additional openings will occur as workers change jobs of occupations .

Corporate down-sizing has had some effect on the number of employment opportunities for Wholesale Buyers. However, even during periods of economic decline, the employment of workers in the wholesale industry, including Buyers, has remained relatively stable. This stability can be attributed to the diversity of the wholesale industry's customers. The employment growth of Wholesale Buyers may be limited by the increasing use of computers which enable fewer Buyers to perform more work in an efficient, cost-saving manner.

Because the procurement process is more automated, it is extremely important for Wholesale Buyers to be computer literate, including knowing how to use word processing and spreadsheet software. Other important qualities include the abilities to analyze technical data in suppliers' proposals; good communicating, negotiating, and math skills; knowledge of supply chain management; and the ability to perform financial analyses.

MICHIGAN 'S EMPLOYMENT OUTLOOK TO 2002-2012

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SOURCES OF ADDITIONAL INFO RMATION

Printed Occupational information is available upon written request from the sources below:

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  Copyright © 2006 Michigan Department of Labor & Economic Growth