Further elaborating on Porter’s Five Forces, I’ll define each of the forces in a separate post. Below I’ll define the Bargaining Power of Buyers.
The definition is simply how much power does a single buyer have. If an industry has many buyers than each buyer is very weak. Individually they cannot influence the industry. So a buyer might have to accept lower product quality and higher prices simply because they don’t have a choice due to inadequate substitutes. The same situation occurs if there are very few sellers as that means the power of each individual seller goes up. If an industry has very few buyers, then each buyer is very powerful. They have a lot of influence over the industry so product quality will be increased and price will go down. It’s the same situation if there is many sellers as that means individual sellers are very weak.
If a pharmaceutical company creates a lifesaving medication that would help millions of people and they are the only company that is legally allowed to sell it, then the seller is extremely powerful and the bargaining power of individual buyers is weak.
|Rate||Assets Under Management|
|1.00%||Between $125,000 and $750,000|
|.85%||Between $750,000 and $1,250,000|
|.80%||Between $1,250,000 and $1,750,000|
|.75%||Between $1,750,000 and $2,500,000|
|.70%||Between $2,500,000 and $3,250,000|
|.65%||Between $3,250,000 and $4,250,000|
A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.
As I’m writing these to help my readers, I would be very appreciative of any input in regards to what I should write next. If you want me to write about a particular topic, please contact me. Please contact me if you would like to submit a post to my blog.
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Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?