The Real Power of Buyers and Suppliers: Stop Overlooking These Price-Setters
You probably know who buys from you or supplies what you need, but have you really thought about who holds the power? A friend once ran a sandwich stand at a stadium, thrilled by growing lines each week. But then, the one bread supplier doubled prices with zero warning, knowing there was no other local option. Profits vanished overnight. Another time, a freelance illustrator’s biggest client started demanding quicker turnarounds and lower rates—because she knew the artist relied entirely on her business.
Power flows to whoever can walk away easily, has irreplaceable value, or controls access to something crucial. Sometimes you can balance things out by offering something unique (custom designs, speed, loyalty) or by not putting all your eggs in one basket. In behavioral science, reliance and leverage explain how relationships lead to ‘squeeze’ or security—it’s not personal, just a dynamic of who needs whom more.
Changing this is possible, but it takes conscious strategy: diversifying where you buy, negotiating clearer agreements, or even collaborating with others to boost your collective power. Noticing these patterns early makes a huge difference when things get tough.
Grab a notebook and jot down your key buyers and suppliers, then spend a minute judging—who actually calls the shots in each relationship? Pay attention to where you’re at risk if someone pulls out or sets tough terms. For any weak spots, brainstorm specific ways to increase your value, spread your risks, or unlock new sources. This bit of effort now will save you headaches and put you in a stronger spot whenever terms change.
What You'll Achieve
Protect yourself from painful surprises, gain confidence in negotiations, and build more sustainable connections that don’t leave you vulnerable to the whims of bigger players.
Profile Buyer and Supplier Leverage in Your Relationships
List your biggest buyers and suppliers.
Write down who you depend on most for sales (buyers) and sourcing (suppliers)—family clients, favorite stores, specific vendors, etc.
Assess who has more leverage in each relationship.
Ask: Who really sets the terms? If you lost them, would it hurt more than if they lost you? Mark each side as strong or weak.
Brainstorm ways to balance or shift that power.
For relationships where you're weaker, list two actions that raise your value or reduce dependency—like diversifying partners, building unique skills, or locking in longer agreements.
Reflection Questions
- Where am I most dependent—and how can I reduce that risk?
- What unique value do I offer that can shift the balance?
- Who could suddenly change terms on me, and am I prepared?
Personalization Tips
- If you’re a student, identify if any one teacher or admin has outsized influence on your progression, and consider ways to broaden your support.
- For a small business, note if one supplier can raise prices or cut you off—then look for back-ups.
- In a creative partnership, realize if your collaborator holds all the audience or funding connections.
Competitive Strategy: Techniques for Analyzing Industries and Competitors
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