Buyer's market and seller's market designate two extreme market situations. Meant is in each case the market, whose conditions are specified by the buyer and/or the salesman. Conditions are price deductions, terms of payment, conditions as per contract, commercial times and commercial places.

Buyer's market

"… designates a market situation, in which the buyer is in a negotiation-tactically more favorable situation than the salesman. Reasons for the strong position can be:

• The offer exceeds the demand, it exists offer overhang.
• The need is not urgent, since it is temporally adjustable.
• The customer has higher technical and market knowledge than the salesman.
• The salesman depends on the buyer.
• Over Einkaufskartelle or an adjusted market there is no competition among the buyers.
• Loses if the money, which the buyer would have for the purchase of the commodity exchanges, with the time less at value than the commodity (e.g. with small inflation or deflation), then it is to be bought more favourably, the money too kept and the commodity as late or not at all as possible. In this case money is more in demand than commodity. Who has the more in demand, determines the market. In the national economies there was beginning by the oil crisis and following by the globalization a change from salesman to the buyer's market.

Seller's market

"… designates a market situation, in which the salesman is in a negotiation-tactically more favorable situation than the buyer. Reasons for the strong position of the salesman can be:

• The demand exceeds the offer, it exists demand overhang.
• The need is urgently, e.g. first aid after accident by emergency services.
• The salesman has higher expertise (e.g. law offices).
• The buyer depends on the salesman (e.g. senior support)
• The market is adjusted or by trusts is competition switched off (e.g. frequently with traffic services)
• The payment is made not by the buyer, but by a third party, for example an insurance.
• Loses if the money, which the buyer would have for the purchase of the commodity exchanges, with the time more at value than the commodity (e.g. with strong inflation), to be bought then it is the commodity more favourable, the money to be spent and as early as possible. In this case commodity is more in demand than money. Who has the more in demand, determines the market.

Articles in category "Buyer's market"

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Related Websites

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