Business People

Difference between Internal and External Customers

Main Difference

Internal Customers and External Customers are basically those who purchase or buy the product of an organization / company / factory. The customer may be the vendor, distributor, and supplier or may be the end user. Internal customers and External customers are differing from each other in many aspects. Internal Customers are those individuals, division or employee who purchases the product of the company / organization being the part of the company in a way or other. External Customers are those individuals who do not belong to company / organization in any aspect or may be the end user of the product. Quality and quantity of the product should meet the demands of the External customer as he the end user of the product.

Internal Customers

internal-customersInternal Customers are those individuals, division or employee who purchases the product of the company / organization being the part of the company in a way or other. Internal customers are associated with the organization. Internal customers know more about the pros and cons of the product as they are involved in the company. Internal customers get the product on cheap rate on fewer margins. Internal customer may be the beneficiary in profit for the sale of the product. Internal customer may be the middle man between the company and the External customer. This is in practice by many of the companies so that their employee gets train and may deal with External customer effectively. Internal customer knows well about the actual manufacturing cost and thus they bargain with the organization to get the product on reasonable price.

External Customers

external-customersExternal Customers are those individuals who do not belong to company / organization in any aspect or may be the end user of the product. Basically the target area of any organization or the company is the External customer. He is not associated with the company. He does not know about the manufacturing of the product. He is unaware of the profit earned by the company. External customers get the product for their own use. Company’s profit increases with the increase in External customers. Maximum price of the product is paid by the External customer. Any product which is being prepared or manufactured in the organization or factory is required to meet the demands of External customer as they are the end users.

Key Differences

  • Internal Customers are those individuals, division or employee who purchases the product of the company / organization being the part of the company in a way or other. External Customers are those individuals who do not belong to company / organization in any aspect or may be the end user of the product.
  • Internal customers are associated with the organization while external customers are not associated with the organization or company.
  • Internal customers know more about the pros and cons of the product as compare to the External customers.
  • Internal customers get the product on cheap rate as compare to the external customers.
  • Internal customer may be the beneficiary in profit for the sale of the product but external customer is not the beneficiary in profit for the sale of the product of any organization.
  • Internal customer may buy the product for not using by him but External customer buys the product for its own use.
  • Internal customer may the middle man between the company and end user but external customer may be the end user.
  • Internal customer knows well about the actual manufacturing cost and thus they bargain with the organization to get the product on reasonable price while External customer is unable to bargain as he is not in connection with the company.