Trading and sales of commodities requires excellent market and marketing knowledge. Commodity trading and sales is a business relationship between at least two companies. The users of the commodity usually do not take the purchase decision. Commonly several decider are involved in the purchasing process.
In order to be successful it is crucial to know the decision process and the decision-makers in the target enterprise – these are usually not only within the commercial, but also within the technical departments. As commodities account for a large proportion of the costs, management is often involved in the decision-making process.
Marketing and sales of commodities requires considerable effort. This is especially true in those cases, where the selling company intends to develop end-customers in a new geographical area.
This can be facilitated through the involvement of experts, who know the target market and who develop the target market for the commodity producer. Such expert knowledge can be acquired from trading house. Good value alternatives can be sales representatives, who work on a success-fee basis – often on an exclusive basis.