Basic Differences between Traders vs Businesspeople

In the business world, you will be familiar with the terms trader and businessman. Judging from the ultimate goal, these two professions actually both sell goods. However, there are fundamental differences between traders and business people.

However, that doesn't mean one is better than the other. On the other hand, each profession has its own role. Traders may turn into business people. Likewise, business people seem to have to hone themselves to become traders.

So, where exactly is the difference between business people and traders? Find out more below!

Difference between Traders and Businesspeople

Many people say, "Be a businessman, don't just be a trader." Even though it is a good quote, the opinion is not 100 percent correct. There are times when traders cannot get multiple profits like business people. Businesspeople still have the possibility of not being able to sell more than traders.

Here are other differences that can be seen between traders and business people:

1.  Marketing planning

Business people need planning to get results. They are required to make short, medium and long term plans for business continuity. This planning must also involve many aspects, including capital and implementation time period.

Traders also need a plan. However, the strategy used is simpler. They will just buy things from other people, then sell them.

2. How to build relationships with consumers

Traders will satisfy buyers with a price bargaining approach. In other words, traders will make prices higher so they can bargain. That way, customers will be happier when shopping.

This is different from business people who will provide special prices or bundling to attract consumers. This special price will also attract more customers to buy the product. The good thing is, these business people can sometimes influence market prices.

3. Work system

Business people have a complicated work system from upstream to downstream. Therefore, business people cannot work alone. They have to work together with other people. Businesspeople need people who work on finance, marketing, and other parts of the business.

On the other hand, the business chain carried out by traders is very short. Therefore, traders can do everything alone. Even though the profits obtained are sometimes limited, traders can enjoy them without needing to share them with other parties.

4. Products being marketed

Traders will sell products directly to consumers. An apple seller will sell apples by weight to the seller. Then, they will immediately benefit from the sales results.

However, business people may not only sell apples as a product. Business people will change the apple to have added value. For example, apples are made into juice or added to food. This will also cause the price of apples to increase many times over.

Adding value to the product can also be done by providing other elements of the product. When fruit juice traders only set a price of IDR 15 thousand per glass. Business people who have fruit juice products can charge IDR 50 thousand. The reason is, he offers fruit juice in a restaurant with air conditioning and friendly service.

5. Long term vision

Trading and doing business are also related to long-term vision. Traders can survive for a long time when they successfully sell their merchandise and make a profit. They will compete with other traders in product variety and availability of goods.

When the goods being marketed are no longer sought after, traders will replace them with new goods. This aims to keep buyers coming to them to make transactions.

This is different from business people who are required to always innovate in all aspects. It could be that business people continue to sell the same item from year to year. They will only change their marketing methods or packaging to maintain their appeal.

Both businessmen and traders still have good attraction in business. Mastering these two skills will give you more value. To gain more knowledge about the business world, you can take part in the Strategic Business Analysis program from prasmul-eli. You can be given the knowledge to analyze appropriate business strategies to apply immediately.