Buyers and Purchasing Agents
Buyers and purchasing agents try to buy the best products at the lowest possible prices.
Those who buy finished goods, such as clothes or furniture, are called buyers. Those who buy the parts and materials that help make goods are called purchasing agents or purchasers.
Buyers and Purchasing Agents are in the Marketing, Sales, and Service career cluster and the Professional Sales pathway.
Quick Facts
Wages: |
Well above the statewide median
$28.21 / hour Read more about wages |
Outlook: |
Percent Growth
8% Below statewide average Read more about outlook |
Education & Training: |
Long-term on-the-job training (more than 12 months) is common. |
On the Job: |
Work Activities
Assess your skills |
Job Title Examples: |
Almonds Grower Representative,
Buyer,
Farm Marketer
See more job title examples |
Source: Minnesota Department of Education, Minnesota Department of Employment and Economic Development, and CareerOneStop.
Wages & Outlook
Wages
Wages for buyers and purchasing agents vary by field. Wages for workers in some fields are given below.
Pay varies based on how much the company sells. Pay also varies by the size of the company. Larger companies generally pay higher wages than smaller companies.
Pay also varies by the type of company or agency. For example, buyers who work with farm products tend to earn lower wages than those who work with other products. Purchasing agents who work for the federal government earn higher wages than those who work for local government agencies.
Buyers and purchasing agents who work full time usually earn benefits. Typical benefits are health insurance, paid vacation, and a retirement plan. In addition to these benefits, retail buyers may receive cash bonuses. These bonuses are based on their work performance. They may also receive discounts on merchandise.
View the Regional Wage Comparison Chart for:
- Purchasing Agents, Except Wholesale, Retail, and Farm Products
- Wholesale and Retail Buyers, Except Farm Products
- Purchasing Agents and Buyers, Farm Products
Employment
In Minnesota, about 9,643 buyers and purchasing agents work in this medium-sized occupation.
Most buyers or purchasing agents work in wholesale trade at distribution centers or factories. Wholesale trading companies help manufacturers sell their products. Wholesale trade includes a wide range of products. These products range from frozen peas to baseball bats to aircraft.
Almost every business that sells goods has someone who buys the parts for them. This means that jobs can be found in both small and large towns. Buyers and purchasing agents work in both large and small companies. However, larger companies usually are located in larger towns. Larger companies also may hire more than one buyer or purchasing agent.
Major employers:
- Merchant wholesalers
- Manufacturing
- Retail trade
Outlook
Several factors will contribute to the slow growth for this occupation. First, computer technology has decreased the amount of paperwork that buyers and purchasing agents must complete. This has reduced the need for lower-level buyers. Second, long-term contracts between companies are reducing the amount of negotiation that takes place. In retail trade, many companies are merging or being bought out. Finally, the use of credit card and electronic purchases is also reducing the need for purchasing agents. If staff can easily purchase the products they need, then they do not need purchasing agents. However, companies are demanding a greater number of purchased goods and services. In addition, large companies are increasing the size of their purchasing departments to accommodate purchasing services contracts from smaller companies. Both of these factors will help the growth of this occupation.
People with a bachelor's degree in business may have the best chance of getting a job as a buyer. Most job openings will result from current workers leaving this occupation or retiring.
| Employment | Employment Change | |||
|---|---|---|---|---|
| 2010 | 2020 | Number | Percent | |
| U S | 284,200 | 299,300 | 15,100 | 5.3% |
| Minnesota | 6,124 | 6,614 | 490 | 8% |
| 2010 | 2020 | Number | Percent | |
| Central Minnesota | 440 | 491 | 51 | 11.6% |
| Northeast Minnesota | 216 | 234 | 18 | 8.3% |
| Northwest Minnesota | 338 | 383 | 45 | 13.3% |
| Southeast Minnesota | 449 | 490 | 41 | 9.1% |
| Southwest Minnesota | 333 | 373 | 40 | 12% |
| Seven County Mpls-St Paul, MN | 4,314 | 4,592 | 278 | 6.4% |
Source: Minnesota Department of Employment and Economic Development and Minnesota Department of Education.
On the Job
Overview
Buyers and purchasing agents try to buy the best products at the lowest possible prices.
Take an ordinary bottle of shower gel. You bought it because it smells nice, is affordable, and has special ingredients for dry skin. Have you ever thought how that shower gel was made? Maybe you picture large vats of bubbly liquid being stirred. But what about the different ingredients that go into the vats? Maybe now you are picturing a scientist in a white lab coat, testing the latest recipe. Yet, that scientist is not the only person involved in creating the perfect shower gel. Someone is needed to buy the glycerin, preservatives, and lathering agents. These products all come from different vendors and suppliers. Some of these products might affect the natural environment less than other products.Buyers and purchasing agents buy goods and services for their companies. These goods and services are then resold. Those who buy finished goods, such as clothes or furniture, are called buyers. Those who buy the parts and materials that help make goods are called purchasing agents or purchasers. These two types of workers have similar duties.
Before buying any goods, buyers and purchasers research suppliers. Suppliers are the people who sell the goods and services. Buyers and purchasing agents review the history and quality of the suppliers. They go to trade shows and examine the goods that are on display. They may travel to factories to examine products. Buyers and purchasing agents review suppliers' products for prices, quality, availability, environmental impact, and selection.
Once buyers and purchasing agents find a few good suppliers, they solicit bids. This means they give suppliers a list of what they want. Suppliers then give buyers and purchasing agents a written statement of the cost for all those goods. Buyers and purchasing agents try to bargain for a lower price on the goods. They may take a higher priced product if it is better for the environment. Once they are happy with the price, buyers or purchasers sign a contract with the supplier. Buyers and purchasing agents continue to monitor the contract to ensure the agreements are met. If there are any problems, they work with suppliers to resolve them.
Purchasing agents must know how their products are created. They must know what types of material work best for manufacturing. They also look at which materials have less of an environmental impact. They must order parts to be there when production needs them. If the parts are missing, many businesses have to stop production. If purchasing agents don't plan well, companies lose money.
Buyers are rarely told what to buy. Instead, they buy what they think appeals to customers. Thus, buyers must be aware of the latest fashion trends. Buyers also watch their competitors and see what they are buying. Many customers want to buy products that are environmentally friendly. Buyers and purchasing agents look for green products to sell. They decide when and how to introduce green products to their customers.
Buyers and purchasing agents often specialize in what they buy. For example, a buyer for a department store may buy only shoes. A purchasing agent may buy one type of commodity, such as steel, cotton, or wheat. However, in small companies, one buyer may buy all the products. Buyers and purchasers keep track of economic information that relates to their product. Thus, they track market conditions, price trends, environmental issues, or the futures market. Many buyers and purchasing agents use computers to track this data. They also use computers to monitor inventory and sales.
Some buyers and purchasing agents are supervised by managers. These managers handle the more difficult purchases. Other buyers and purchasing agents direct staff. For example, they may teach staff about the qualities of new products. They may also approve advertising campaigns and recommend prices.
In some companies, buyers and purchasing agents are involved in product development. Their knowledge of a part's cost, availability, and suitability to the job can help with the design. Another recent change is team buying. Buyers and purchasing agents work closely with other staff when deciding what to buy. They may talk with engineers and quality control staff about the best parts to order. They may consider the environmental impact of shipping products. Buyers or purchase agents might choose a product that is made nearby to reduce the energy needed to ship it.
Purchasing staff who work for the federal government may be called contract specialists. They usually use sealed bids. Different suppliers submit their product prices on an anonymous bid. The specialist chooses the bid that is the lowest. Contract specialists must follow many laws. Since the laws change occasionally, contract specialists must stay informed.
Farm product buyers work closely with farmers. They may negotiate contracts for farmers to produce certain goods, such as milk, soybeans, or Christmas trees. They may arrange for the purchase of seeds for the farmer to grow. Farm product buyers spend a lot of time outside surveying the land. They may advise farm workers or growers how to increase their production. They may also help farmers learn to grow produce that meets organic standards. They also may write their suggestions in publications that reach larger audiences.
Work Activities
The following list of occupational tasks is specific to this career.
- Choose products to sell. Consider quality, size, or environmental soundness.
- Locate and arrange for purchase of goods.
- Compare transportation choices to lower energy use for moving products.
- Direct and coordinate workers' activities.
- Analyze product information. This may include what is a good price to pay or which product has less effect on the environment.
- Negotiate lowest price with suppliers and vendors.
- Formulate policies and rules for placing bids for goods or services. Consider impact on the environment.
- Award contracts to suppliers.
- Evaluate and monitor contracts to ensure promises are met.
- Confer with vendors to discuss new products, green products, or problems with orders.
- Use computer software to manage sales records and inventory.
- Identify customer and store needs. This includes customers' efforts to buy green products.
- Determine the best way to introduce new green products.
- Set or recommend prices on products. This includes green products.
- Develop and approve advertising materials.
- Advertise green products based on customer wants and needs.
- Teach staff about new products.
- Monitor competitor's sales activities.
- Research environmental trends and economic conditions to predict buying patterns.
- Arrange purchase of equipment, fertilizer, or feed.
People in this career perform the following list of tasks, but the tasks are common to many occupations.
- Establish and maintain relationships.
- Communicate with supervisors, peers, or subordinates.
- Make decisions and solve problems.
- Get information needed to do the job.
- Communicate with people from outside the organization.
- Convince others to buy goods or change their minds or actions.
- Use computers.
- Resolve conflicts and negotiate with others.
- Update and use job-related knowledge.
- Organize, plan, and prioritize work.
- Judge the value of objects, services, or people.
- Perform administrative tasks.
- Work with the public.
- Process information.
- Think creatively.
- Monitor events, materials, and surroundings.
- Estimate sizes, quantities, time, cost, or materials needed.
- Schedule work and activities.
- Analyze data or information.
- Explain the meaning of information to others.
Working Conditions
In a typical work setting, people in this career:
- Have a high level of contact with others.
- Communicate with others by telephone, e-mail, and face-to-face discussions. They also write letters and memos, but less frequently.
- Often work as part of a team.
- Are sometimes placed in conflict situations in which others may be rude or angry.
- Are somewhat responsible for the work done by others.
- Almost always work indoors. Those who work with farm products or sporting goods may work outdoors.
- May share work space with others.
- Must fully complete and be exact in their work. Buyers and purchasing agents must evaluate materials carefully to see if they are right for their products. Errors could seriously endanger the users of their products.
- Repeat the same mental tasks.
- Regularly make decisions that affect others as well as their own company's reputation and performance. They sometimes act independently, but usually take recommendations from others first before deciding what to do.
- Usually set their daily tasks and goals without talking to a supervisor first.
- Work in a moderately competitive atmosphere.
- Must meet strict weekly deadlines.
- May work part time or full time.
- Usually work more than 40 hours a week to meet special sales or deadlines.
- Often work evenings and weekends. This overtime is more common before holiday seasons.
- May travel several days a month. Purchasers for large manufacturers and retailers may travel outside of the country. Fashion buyers may also travel internationally.
Interpersonal Relationships
Physical Work Conditions
Work Performance
Hours/Travel
Physical Demands
In a typical work setting, people in this career:
- Sit at desks for long periods of time.
- Repeat the same movements.
- Use hands to handle, control, or feel objects, tools, or controls.
- Speak clearly so listeners can understand.
- Understand the speech of another person.
- See details of objects that are less than a few feet away.
- See details of objects that are more than a few feet away.
- Hold the arm and hand in one position or hold the hand steady while moving the arm.
- See differences between colors, shades, and brightness.
- Use hands or fingers to grasp, move, or assemble objects.
People in this career frequently:
It is important for people in this career to be able to:
It is not as important, but still necessary, for people in this career to be able to:
Source: Minnesota Department of Education.
Education & Training
Preparation
To work as a buyer or purchasing agent, you typically need to:
- have a high school diploma or GED; and
- complete long-term on-the-job training.
Education after high school
There are many educational paths you can take to become a buyer or purchasing agent. The path varies with the type of company you want to work for and the goods or services they provide.
For most jobs a high school diploma is adequate. However, some buyers and purchasing agents have a bachelor's degree. Common majors are business, economics, and purchasing. Some buyers and purchasing agents have a bachelor's degree related to the products they buy. For example, those who purchase supplies for machinery manufacturers may have a degree in engineering. Those who purchase plastics for toy manufacturers may have a degree in chemistry.
You may need an engineering or master's degree for jobs that involve technical products. These jobs generally are in manufacturing, government, and construction.
Work experience
Many firms promote their employees to beginning or assistant buying jobs. In retail stores, you may start as a sales clerk or a junior buyer. Manufacturing firms may promote experienced purchasing clerks. Construction firms and suppliers look for workers who have good knowledge of building materials and methods.
On-the-job training
As a new buyer, you receive on-the-job training that typically lasts at least one year. In wholesale and retail businesses, you begin by selling merchandise. You may also supervise other sales staff. You learn how to check invoices on new deliveries and keep track of stock. As you progress, you get more buying-related duties.
Many manufacturing firms have training programs for new buyers and purchasing agents. You learn about company operations and purchasing practices. You work closely with experienced workers who teach you about commodities, prices, suppliers, and markets. You may also work with the production-planning department and learn about what is required of the materials that make the products. In addition, you learn how the inventory system works. It is important that you keep the supplies in stock for when workers need them.
Military training
Some branches of the military train people to be purchasing and contracting managers. Training lasts three to ten weeks, depending on your specialty. Further training occurs on the job. You generally need a bachelor's degree to enter this military occupation.
Related Programs (Current training programs available)
- Agricultural/Farm Supplies Retailing and Wholesaling
- Wine Steward/Sommelier.
- Apparel and Textile Marketing Management.
- Sales, Distribution, and Marketing Operations, General
- Merchandising and Buying Operations
- General Merchandising, Sales, & Related Marketing Operations, Other
- Fashion Merchandising
- Apparel and Accessories Marketing Operations
Fields of Study (What to study to prepare for this career)
Click on any of the Fields of Study listed below to find out more about preparing for this career.
- Agricultural Business and Management
- Apparel and Textiles
- Business Economics
- Buying and Merchandising
- Chemistry
- Economics
- Electrical, Electronics, and Communications Engineering
- Fashion Merchandising
- International Business, Trade, and Finance
- Logistics and Materials Management
- Mechanical Engineering
- Operations Management
- Purchasing and Contracts Management
Helpful High School Courses
In high school, take classes that prepare you for college. A college preparatory curriculum may be different from your state's graduation requirements.
You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.
Helpful electives to take in high school that prepare you for this occupation include:
- Accounting
- Computer Applications
- Introduction to Business
- Marketing
- Principles of Sales
- Retail Marketing
The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.
You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.
Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career.
Source: Minnesota Department of Education.
Skills
People in this career need to:
- Understand spoken information by listening and asking questions.
- Express ideas clearly when speaking or writing.
- Read and understand work-related materials.
- Judge the costs and benefits of a possible action.
- Analyze ideas and use logic to determine their strengths and weaknesses.
- Combine several pieces of information and draw conclusions.
- Notice when something is wrong or is likely to go wrong.
- Use reasoning to discover answers to problems.
- Understand new information or materials by studying and working with them.
- Follow guidelines to arrange objects or actions in a certain order.
- Identify problems and review information. Develop, review, and apply solutions.
- Use math skills to solve problems.
- Manage the time of self and others.
- Decide how to spend money to get the work done and keep track of how the money was used.
- Check how well one is learning or doing something.
- Obtain needed equipment, facilities, and materials and oversee their use.
- Be aware of others' reactions and change behavior in relation to them.
- Solve problems by bringing others together to discuss differences.
- Look for ways to help people.
- Use several methods to learn or teach new things.
- Persuade others to approach things differently.
- Test and inspect products, services, or processes. Evaluate quality or performance.
- Analyze needs and requirements when designing products.
Communicate
Reason and Problem Solve
Use Math and Science
Manage Oneself, People, Time and Things
Work with People
Work with Things
Knowledge
People in this career need knowledge in the following areas:
- Clerical: Knowledge of general office work such as filing and recording information.
- Administration and Management: Knowledge of managing the operations of a business, company, or group.
- Mathematics: Knowledge of the rules and uses of numbers. Areas of knowledge include arithmetic, algebra, geometry, and statistics.
- Customer and Personal Service: Knowledge of providing special services to customers based on their needs.
- English Language: Knowledge of the meaning, spelling, and use of the English language.
- Economics and Accounting: Knowledge of producing, supplying, and using goods and services. Also includes knowledge of the methods for keeping business records.
- Sales and Marketing: Knowledge of advertising and selling products and services.
Interests
People in this career are people who tend to:
- Consider independence important. They like to make decisions and try out ideas on their own. They prefer jobs where they can plan their work with little supervision.
- Consider good working conditions important. They like jobs offering steady employment and good pay. They want employment that fits their individual work style. They may prefer doing a variety of tasks, working alone, or being busy all the time.
- Consider relationships important. They like to work in a friendly, non-competitive environment. They like to do things for other people. They prefer jobs where they are not pressured to do things that go against their sense of right and wrong.
- Consider support from their employer important. They like to be treated fairly and have supervisors who will back them up. They prefer jobs where they are trained well.
- Consider achievement important. They like to see the results of their work and to use their strongest abilities. They like to get a feeling of accomplishment from their work.
- Have enterprising interests. They like work activities that involve starting up and carrying out projects, especially in business. They like to lead and persuade others, make decisions, and take risks for profit.
- Have conventional interests. They like work activities that follow set procedures, routines, and standards. They like to work with data and detail. They prefer working where there is a clear line of authority to follow.
- Have realistic interests. They like work activities that include practical, hands-on problems and solutions. They like to work with plants, animals, and physical materials such as wood, tools, and machinery. They often prefer to work outside.
Source: Minnesota Department of Education.
Tools & Technology for Purchasing Agents and Buyers, Farm Products
- Purchasing Agents, Except Wholesale, Retail, and Farm Products
- Wholesale and Retail Buyers, Except Farm Products
Tools
Animal weighing scales
| Notebook computers
|
Technology
Accounting software
| Inventory management software
|
Licensing / Certification
Certification Details
Certifications are examinations that test or enhance your knowledge, experience or skills in an occupation or profession.
There are 11 certifications related to this career.
Licensing Details
No State of Minnesota license requirements are found for this career.
Source: Minnesota Department of Employment and Economic Development and CareerOneStop.
Jobs
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Hiring Practices
Employers prefer to hire applicants who know their company and its products. They also look for people who know how wholesale and retail markets work. Some retail firms promote qualified employees to assistant buyer positions. Other retail stores recruit and train college graduates as assistant buyers. Most employers use both hiring methods.
Employers' requirements for hiring vary with the size of the company. Large stores and wholesale and retail trade companies prefer to hire people who have completed their bachelor's degree. Many prefer applicants who have pursued a business degree.
Manufacturing firms are less likely to hire someone who does not have a bachelor's or master's degree. These employers prefer workers who have a degree in business or economics. Manufacturing firms may hire people who have technical training related to their company's products.
Employers prefer to hire people who know how to use computers, especially word processing and spreadsheet software. Employers also look for workers who have good math skills.
Employers look for people who understand customers. They look for someone who can make quick and good decisions about products. They also look for someone who can be resourceful. For example, if a buyer is unable to find an exact item, they must find one that is similar. Employers look for workers who are aware of trends and know what types of products will sell. Employers also look for workers with leadership and negotiating skills.
Advancement Opportunities
Experienced buyers may advance by moving to larger departments where they manage more products. Others may go into sales for manufacturers or wholesalers.
An experienced purchasing agent or buyer may advance to an assistant purchasing manager position. In this position, they would supervise purchasing staff. With this experience, they may move up to purchasing manager, supply manager, or director of materials management. At these upper levels, their duties may overlap with other management functions. These functions may include planning, production, and marketing.
All buyers and purchasing agents need continuing education to advance in their field. Many professional associations offer courses. Some purchasers take college classes such as purchasing. Professional certification is becoming increasingly important for advancement.
Job Title Examples
Almonds Grower Representative, Buyer, Farm Marketer, Procurement Manager, Tobacco Buyer, Procurement Specialist, Purchasing Manager, Trader
Similar Careers
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If you are looking to broaden your job search,
these careers require similar skills. Click on the names to link to their career profile.
Advertising Managers
Agents and Business Managers
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Related Industries
Below are industries related to Buyers and Purchasing Agents you may be interested in reading about. Employers in these industries typically hire
Buyers and Purchasing Agents. Click on the names to link to their industry profile.
Advertising
Building And Garden Supply Stores
Business Management And Support Services
Computers And Electronic Products
Education
Electrical Equipment
Electronics And Appliance Stores
Food Products
Food Stores
Gas Stations And Mini Marts
Health And Personal Care Stores
Hospitals
Machinery Manufacturing
Motion Pictures And Sound Recording
Performing Arts And Sporting Events
Pipeline Transportation
Research And Development
Telecommunications
Toys, Sporting Goods, And Other Products
Transportation Support And Warehousing
Wholesale Trade
Source: Minnesota Department of Employment and Economic Development and Minnesota Department of Education.
