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A Sales Rep from AdVance Spends Several Months with the Buyer

question 42

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A sales rep from AdVance spends several months with the buyer for a company that owns a dozen farms understanding the buyer's needs,and puts together a proposal for several fertilizers produced for the company's specific needs. When the sale is about to close,the buyer decides to purchase a cheaper,pre-made,standardized formula from another supplier. What is the most likely explanation of the outcome of the interaction?


Definitions:

Average Cost Per Unit

The total cost of production divided by the total number of units produced, providing a cost measure per single unit.

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Units

A basic measure or quantity of product one of something, often used in the context of production, sales, or inventory.

Inventory Cost Flow

A method used to value and manage inventory, determining the cost of goods sold and ending inventory.

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