What does bargaining power of customers mean?

bargaining power of customers meaning in Law Dictionary

n feature that happens because a buyer is arranged, a buyers purchases trigger revenue for a supplier, they buy with regards to very own money, or there are more vendors than purchasers. A buyer can ask what they want and lower prices.


bargaining power of customers meaning in Business Dictionary

benefit that results in which (1) the purchasers are concentrated or organized, (2) their purchases represent a big area of the provider's revenue, (3) their purchases represent a big part of their own expenses, or (4) you can find too many companies chasing too few buyers. Buyers such position can (and do) put relentless pressure on the manufacturers by demanding higher quality at reduced rates.