Powerful customers can force price cuts and/or quality improvements. Either way, margins(利润) are eroded. Bargaining power is high when a combination of factors arises:
l A buyer’s purchases are a high proportion of the supplier’s total business or represent a high proportion of total trade in that market(购买方从卖方购买的产品占卖方销售量很大比例)
l A buyer makes a low profit (购买方利润低)
l The quality of purchases is unimportant or delivery timing is irrelevant, and prices will be forced down.(购买产品的质量不重要,交货期无关,价格就会压低)
l There are similar alternative products available from other suppliers.(存在相似的其他产品)