Understand Your Buyer > How To Convert > The Exclusive Supplier Effect
What is it?
The Exclusive Supplier Effect is all about offering to supply a client exclusively and to not supply their competitors.
Why does it work?
It works for a number of reasons. As buyers we often like to feel like we have access to something exclusive/special and something that only we will benefit from (rather than our competition) and for that reason if we’re offered exclusive supply of something, we can often pay more for the privilege
How can you use it?
This can be used in two different ways:
Firstly as a seller, you can use it to attract buyers: You will potentially have suppliers of goods and services. In the same way Amazon can convince authors to only publish their audiobooks on Audible, could you negotiate that only you can supply certain things? an example here is the artist Anish Kapoor who is the only artist in the world to use VantaBlack – the darkest colour in the world.
Secondly, as a seller, you can use it to secure the deal. If you are speaking with a potential buyer, then part of the negotiation could be exclusive supply to them, which appeals to their desire for a competitive advantage, feeling special and not missing out on something that their competitors could benefit from.
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