Bargaining Power of Buyers

This refers to the level of control customers have over the products they buy and the prices they pay.

Buyer bargaining power is a feature of the available choice of suppliers (in a monopoly buyers have less bargaining power) and the importance of the product or service to the buyer (if the buyer doesn’t need the item for a business critical activity they have more bargaining power). Buyers who understand their supplier’s business position (for example when the sales staff’s commission periods are due) have greater bargaining power to seek discounts or additional benefits.

Bargaining power of buyers is a term normally found in strategy planning and management

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