Practical Sales Training™ > 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.
Hypothetical Example:
A boutique digital marketing agency approaches a luxury hotel chain. During negotiations, they offer exclusive supply of their high-end social media strategy services to the chain, with a promise that they will not work with any other hotels in the same city.
The hotel sees this as a competitive advantage – they get something that their competitors cannot access, which makes them willing to pay a premium rate for this exclusivity.
Similarly, a craft beer brewer might sign a deal with a trendy bar:
“We’ll be your exclusive supplier of this new seasonal beer, and no other bar in the city will have it.”
The bar owner agrees because they can advertise:
“The only place to try this beer in town is here.”
This scarcity and exclusivity instantly makes the offer more desirable.
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