Gloves off. Source: Unsplash/golfarisa

Finance
Harvard Business Review

Four steps to negotiating with powerful suppliers

Authors
Harvard Business Review
Business Advice
10 minute Read

In many industries the balance of power has dramatically shifted from buyers to suppliers. A classic example comes from the railway industry. In 1900, North America had 35 suppliers of cast rail wheels; railway builders could pick and choose among them. A century later no one looking to build a railroad had this luxury, as only two suppliers remained.

Replica of the “Tom Thumb” locomotive, photographed in 1927. Source: Wikipedia

Today there is just one, which means that railroad builders have no choice but to accept the supplier’s price.

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