THE END BUYER AND THE PROFESSIONAL COMMODITY TRADER 2020 (PCT)
SADI: The Psychology of Business : Final Edit : Jan 21, 2020
Once the supply of goods is secured the PCT reverts from the position of the ‘buyer’ to his supplier–to act as ‘seller’ to end buyers being sourced and then tested. The basic premise is that; since supply is secured and that it has been secured for at least 3 months or more; the seller needs to test as many end buyers as quickly as possible alone or with its own attached string members that the PCT is directing. The main problem here is one of validity and time. While a PCT could source and test perhaps 1 up to 3 end buyers in 3 months; when string members are involved, as much as ten end-buyer could be tested in the same period once the PCT has gained good experience. In the reality of the situation, however, it’s marginally better to test 1 or 2 end buyers who are genuinely interested in the product offered, rather than testing 10 pretend ‘end buyers’ who are really not interested in the offered product at all and will simply pass your offer to other ill-informed traders, rather than end buyers directly, causing a hard-earned supplier to be lost among the banter of ill-informed traders. What is not readily evident to end buyers, suppliers and traders alike is that it could take a minimum of 4 months up to ‘years’ to close on one single lucrative revolving deal with one end buyer. The other problems are to do with deal ‘dwellers.’ An end buyer who (thinks) he wants the product on offer, and as such keeps the deal alive by continually stalling on validity date, and using ‘excuses’ to ask for new offers. This act stops the PCT from testing all other potential end buyers, in where after 6 months the end buyer, who everyone thought was going to ‘buy’ the goods offered, fails to perform. Often the underlying agenda was to try and obtain particulars of the supplier to circumvent the deal. These and other episodes occur a lot in this business, which the SADI doctrine addresses intently.There are ‘good buyers’ then there are ‘fake buyers’ is the lesson being served.
When dealing with dealing end buyer;
- The PCT acts in the interests of a genuine end-buyer at all times. The PCT becomes an advocate of the end buyer as return business and ‘word of mouth’ is very important to the PCT.
- But the PCT must also be firm with its routine and must conduct due diligence online on the end buyer intently.
- A quote is served first. A quote has no legally binding status. A quote is returned 3 days after its issuance, as confirmed. This act will test the end buyer initial intent.
- An offer is advised which is valid for 7 days. If the offer is not returned to the minute, on time or is accepted, but more time is needed, a rejection of the offer has occurred.
- A second offer is issued carrying any changes requested. The second offer is advised, as valid for 7 days. If it is not returned on time unaltered, it is again rejected.
- No third offer is served unless the end buyer has agreed by email, to lodge a token deposit via the issuance of a pro forma receipt, if the offer needs to be extended otherwise– no new offer will be issued..
- The PCT has just limited time-wasting attributes to 21 days or less allowing the PCT to test other end-buyers waiting inline or to be sourced, while supply is still ‘fresh,’
The PCT has to learn to apply the described ’21 day’ routine as a ‘discipline’ when testing end buyers, which to date many informed PCT’s have not done so, as advised in the doctrine, because most traders see ‘dollars signs’ which blinds their judgement until the obvious become apparent, months later as the deal collapses into the deep hole of ‘wasted time and effort.’ Some ‘buyers’ may go all the way to contract, just to obtain the document in a lame attempt to learn procedures from the PCT. The ‘buyer’ often does not understand that without supporting knowledge, study and interpretation, such a contract will make no sense. The end buyer will often mislead the PCT, with an excuses and a sense of urgency, and on how they will protect commission payments if the PCT surrenders the details of the supplier on the offer, which simply is a condition a PCT will never abide with. An end buyer may source their supplier and spend months or years as well to do so, or they may buy goods NOW from the PCT. This is just a glimpse of the reality of the whole situation, that the PCT needs to learn about, via the SMICE study. A deposit may be sought based on a simple premise. If the third offer is not extended, the offer becomes invalid, to which the end buyer forfeits the deposit (SLC) to the PCT for ‘failing to perform.’ This event has happened several times on FTNX initiated deals which simply is no reward for the loss incurred on a potentially lucrative deal. The PCT will lose the end buyer if a despot is sought, may be assumed. If this aspect if the third offer ‘routine ’is not initiated by the PCT, the ‘buyer’ could hassle the PCT for many months ‘for more and more offer’ in where the deal finally collapses, a long time later. The deposit aspect will get rid of a pesky ‘buyer’ whose intent is anything but honourable. If a P.A is looking after string members, FTNX would often tell the P.A to dump a suspect deal quickly.The P.A fails to heed our advice and continues with the deal in private, in where ‘4 weeks later’ the deal remerges. FTNX often allows this aspect for a ‘few times’ to show the P.A an educational aspect and lesson, and show the futility of their efforts. If a P.A continues to NOT take heed of the directives of the principal, such is dismissed from the string.
End buyers are tested with the best offer first time around. If they don’t perform within after 21 days, it may be assumed they are wasting your time. The discipline applied is to dump (RF) the deal with no recourse possible unless a deposit is forthcoming FIRST on the third offer is sought. The school of thought here is clear based on long term experience. If an end buyer is going to waste your time with excuses and delays early in the deal, then assume that the end buyer will create problems and make unfair demands later should the deal eventually go through. A real end buyer will generally accept the second offer on time if trivial changes are required on the first offer. Once the end buyer is apparent, the PCT must close the deal in best interests of the end buyer at all times, even if it means crashing a deal intentionally to ensure the end buyer position is protected from financially adverse consequences. There is no or very little room to negotiate on terms and conditions, with end buyers ‘outside the scope of the doctrine’ if the best deal was initially served. This is the kind of insight that laws, rules and other ‘experts’ rarely touch upon because most ‘experts’ don’t have the knowledge connected with 30 years of trading experience as we do.