Get in the Boat by Pat Bodin & Robert Schaffner

Author:Pat Bodin & Robert Schaffner [Bodin, Pat & Schaffner, Robert]
Language: eng
Format: epub
ISBN: 9781946203205
Publisher: Expert Press
Published: 2018-01-21T18:30:00+00:00

Buyer power

On the right side of the X-axis is the threat of buyer power. Any organization that represents more than 5% of your revenue has some power over you. If your organization files with the SEC, you must include those organizations when you report risks to your business.

When I first started my consulting company, our first buyer represented 100% of our business. That buyer, whether they knew it or not, had tremendous influence over us. By the time I was ready to sell the company, that same buyer had decreased from 100% to 15% of our thriving business—substantially less risk, though still reportable risk. Any public company in the U.S. has to report when any buyer represents more than 5% of their business revenue.

Think about how much influence your buyers and your suppliers have over you. As a technologist, help your organization mitigate those risks. You can bring practical plans to the strategists and be relevant because you’re decreasing the risks they’re concerned about.

Factors affecting buyer power include:

• Number of customers

• Size of each order

• Difference between competitors

• Price sensitivity

• Ability to substitute

• Cost of changing

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.