Alexandoy
VIP Contributor
In the farm products there is usually the trader who buys the harvest from the farm and to delivery the goods directly to the sellers (usually in the market or the supermarket). The trader is the supplier that dictates the prices. When the farm would not sell because the offered price by the trader is low then it would be a problem because the farm harvest will be spoiled in 2 days. In short, the farmer has no choice but to sell at the low price of the trader. In the market, the same scenario happens that the trader again would dictate the price. If the vendor would not buy from the trader then he would have nothing to sell for the day.
If you are dependent on 1 supplier then you can be controlled because you are monopolized by your supplier. That is one reason why you need to have several suppliers for your merchandise so that you have the liberty to choose the supplier. If the price is high then you check on the other suppliers and you place the order to the supplier with the lowest price offered. Most of the supermarkets here have several suppliers and we know the reason why.
If you are dependent on 1 supplier then you can be controlled because you are monopolized by your supplier. That is one reason why you need to have several suppliers for your merchandise so that you have the liberty to choose the supplier. If the price is high then you check on the other suppliers and you place the order to the supplier with the lowest price offered. Most of the supermarkets here have several suppliers and we know the reason why.