Question

Discuss the reasons why suppliers are sometimes reluctant to share cost information with buyers - particularly during the early stage of a buyer-seller relationship.

Answer 1

The supplier may feel that revealing cost information to buyers may put them at a disadvantage because it would hurt their pricing strategy, they would be better of withholding the info to sell at a higher price or more convenient manner. The supplier may also not fully understand the cost information, so he or she may not want to give the buyer false information.