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Reciprocal Buying. One type of negotiation which deserves special mention is reciprocal buying. Reciprocal buying is simply the practice of giving preference to suppliers who are also customers. Since it is rare that a customer can also be a supplier, reciprocal buying is not a widespread practice.

Obviously in those situations where it is possible, it can be good business to buy from companies that are also customers if all factors of service, quality and price are equal, since this practice strengthens the relationship and turns a customer into an even better one.

Unfortunately, reciprocity is not used only when quality price and service are equal. If either party is less than a highly desirable supplier, problems can develop.

Furthermore, although reciprocity is not against the law by itself, it could develop into conspiracy and commercial bribery, which are illegal. In the case of large corporations, it may be a violation of the anti-trust laws.

Reciprocity, for all these reasons, should be approached with caution. If you are in a situation where it can be important, it would be wise not to use your customer as a sole source of supply for the product or service involved. See related link for further details

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Q: What is an example of a reciprocal buying?
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Related questions

What is an example of a reciprocal?

If you have the number 14 it's reciprocal is 1/14.


What is a receprical?

Do you mean reciprocal? Well if you do it means the reciprocal of a fraction is mostly flipping the fraction. Here is an example below. Example: Carrie has 7\8 of apples. What is the reciprocal? Answer: The reciprocal is 8\7. It's easy you just switch the numbers.


The reciprocal of a number?

The reciprocal of a number is the number backwards in fraction form. For example, the reciprocal of 25 would be 1/25. The reciprocal of 5/10 would be 10/5.


Do you have to reciprocal with fractions?

no "to reciprocal" is meaningless. If you mean can you take a reciprocal of a fraction, then the reciprocal of 5/97, for example, is 97/5 in just the same way that the reciprocal of 2 (think of 2/1) is 1/2.


Examples of reciprocal pronouns?

Mary and Jon love each other is an example of reciprocal pronouns.


Can the reciprocal of a fraction ever be a whole number?

Yes. For example, if you have 1/3, the reciprocal would be 3.


What of a number is the number inverted?

I think you mean reciprocal. For example, the reciprocal of 2/3 is 3/2.


Do numbers hold the same value if you take the reciprocal?

No because for example the reciprocal of 2 is 1/2


How do you find the reciprocal of a negative number?

A number multiplied with it's reciprocal must be one. So for example if you have -(1/2), than it's reciprocal is -2.


What type of problem do you use for a reciprocal?

Flip the numerator and denominator. For example, reciprocal of 3/2 is 2/3.


What is reciprocal of a rational number?

Just turn it upside down as for example 3/4 reciprocal is 4/3


What is the multiplicative invers or reciprocal?

Where you divide one by the number for example the reciprocal of 2/7 is 3.5 or of 0.25 is 4. =)