Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How Buyers Weaponize Supplier Switching Costs
Most procurement teams treat switching costs as a friction point to minimize, but in this episode of The Buyer's Side, Lucas and Luna explore how top-tier buyers intentionally design contracts to make it expensive for suppliers to leave or for the buyer to switch away from entrenched partners. We break down the mechanics of asset specificity, proprietary data integration, and technical lock-in using real-world examples from industrial manufacturing and software sourcing. This is not about predatory pricing; it is about strategic alignment where high switching costs create stability and…
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