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What is a Consumer Collective?

 , updated on December 08, 2016
A consumer collective is an organization that pushes for discounts or fair terms for its members. It is a business model designed to level the playing field in which large firms sell to individual customers who have little negotiating power. For example, an auto club may be able to negotiate prices for tow trucks far below the typical spot price and pass these savings to members.
Overview: Consumer Collective
Type
Definition
A consumer group who collectively negotiate for fair terms or better prices for their members.
Value
Consumers may have little negotiating power individually but collectively hold great sway over firms.
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