The bargaining power of customers

The concept of negotiation is very present in the reality of the company in different examples. A business is not viable without interaction with customers that establish a business relationship through this service provision. This ability to negotiate is never infinite but limited to limits of reality. Generally, when a customer goes to a store he is not aware of this possibility since when he arrives at the place he finds a shop window with already established prices that are what determine the cost of the purchase.

But customers are part of a moving market in which there is a lot of competition not only in the physical plane but also in electronic commerce. And this context perspective makes many of the decisions that a business assumes take as a reference to the current or potential customer. What are the variables inherent in this issue?


The volume of the order

The ability to negotiate may be in connection with the quantitative characteristic of a high purchase. This data influences stock management and billing. If the client finds a place where he has access to an offer that improves the conditions, he can make the decision to leave (with what that means in the present and in the future). Hence, the voice of these profiles has a greater significance because the fate of the business depends largely on these opportunities.


The customer is always right

This statement that represents a premise widely extended in the philosophy of care assumed by a company reflects in itself the authority that the final consumer has in their relationship with the entity. Something that can be especially important in communicating with a difficult client.

Ability to choose

During a negotiation process, the parties involved can generate alternatives in order to approach the ideal position of the agreement to be reached. The great advantage of the customer’s situation in their purchasing decisions is that, in many sectors, it has the ability to compare prices among a wide catalog of stores that extend the possibility of choice. To all this is added the fact of the possible developments that arise in the present through the inauguration of new points of sale that are born with the motivation to conquer the public. The more numerous the proposals offered by an expanding market, the greater the bargaining power that the consumer has. The opposite occurs in the opposite situation.


by Abdullah Sam
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