An industrial consumer is an entity that purchases products for use in their business, such as agricultural, mining, or transportation industries. They often buy in bulk to receive discounts and can include any customer who purchases industrial products.
Also known as an industrial customer, an industrial consumer is an entity that purchases products with the intent of using those products in the course of doing business. This is different from a private consumer, who purchases goods and services for their own personal use. The term is also sometimes used to identify any customer who purchases industrial products, whether they are intended for use by a business, a non-profit organization, or an individual.
The industrial consumer can be associated with any type of industry. Agricultural customers who purchase heavy farm equipment or purchase supplies needed to operate commercial farms would fall into this category. Similarly, mining operations that purchase equipment and supplies essential to the process of extracting minerals and other natural resources from the earth would be considered industrial customers or consumers. Even a business that is part of the transportation industry, such as a company that builds roads for municipalities, will buy materials used in the course of its business and fit the description of an industrial consumer.
An industrial consumer can buy any type of good or service. A common example is utilities, such as gas and electricity. Manufacturing plants require electricity to run the equipment which in turn produces the goods that the farm owner sells. The energy company supplying energy to the plant would consider the company operating the factory an industrial consumer.
It is not unusual for an industrial consumer to purchase goods and services in bulk. This strategy helps the customer to get discounts that would not be possible by buying smaller quantities from time to time. Volume purchase agreements are created with industrial consumers in mind, as they often provide a lower price per unit purchased in exchange for the customer agreeing to purchase a minimum number of units within a specific time frame. A contract of this type can be used for all types of goods, as well as for telecommunication services and similar products.
There is some difference of opinion as to whether the term ‘industrial consumer’ is actually correct. For those who consider a consumer to be an individual and not a company or other organized entity, the preference is to refer to those users as industrial customers. Despite misgivings in some quarters of the business world, many manufacturers of products purchased in bulk by corporations and other entities refer to their clientele as industrial consumers
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