The biggest customer does not necessarily get a better price

10 December 2019 12:24

The biggest customer does not necessarily get a better price

Øystein Foros and Hans Jarle Kind: The largest chain store does not automatically get a better purchasing price. It is a big blow for Tine to lose Norgesgruppen as a customer, but it will also cost Norgesgruppen dearly to find an alternative.

An enforcement of the competition law that reduces the opportunity to discriminate other chain stores does not eliminate the negotiations between the chains and the suppliers. On the contrary the enforcement may lead to more efficient competition, Øystein Foros and Hans Jarle Kind write.

Their chronicle Største kunde får ikke nødvendigvis bedre pris (in Norwegian) was published in Dagens Næringsliv on December 4, 2019.