Transfer Pricing in International Business

Understanding Your Customers’ Needs

Let’s be clear about one thing right now: It is not just the asking price that a buyer considers when deciding whether to purchase a product or service. It is that and everything else, such as quality, exactness of fit, and delivery time, which goes along with the product or service being bought. It is easy to make assumptions about what customers want and need but that is not the way to go. You need to understand customer priorities, and clarify their likes and dislikes if you are to secure the best possible price from your customer. Knowing what they are, for each of your customers, is important because their purchasing function is one vital link in their organization’s value chain. As such, the buyer must ...