Educators of Beauty Bargaining Power of Suppliers Educators of Beauty attempts t

Educators of Beauty
Bargaining Power of Suppliers
Educators of Beauty attempts to increase their own bargaining power of their product suppliers while they create the leverage over consumer preferences. Educators of Beauty continues to meet the legal requirements from product vendors to become product distributors. They maintain that they have educators that are licensed, knowledgeable, and trained to use and sale specific product brands. The name brands control the product pricing, but Educators attracts the brands willingness to collaborate and do business with them as a school. The competition for Educators as a business then becomes the illegal distributors and the generic product substitutes.
The competitive rivalry and the bargaining power of the customers are similar threats for Educators of Beauty. Currently the competitive rivalry of the beauty school market is the unlicensed cosmetologists. These unlicensed individuals who render beauty services for a profit are creating more bargaining power for the customers. They have created an option or choice of paying for a licensed service or paying a lesser price for the same service from a unlicensed individual. Many beauty industry consumers are choosing to receive services from unlicensed individuals due to the cost of the service. Cosmetology is a hands-on profession which is also skill based. If an individual has shown that they are skilled and capable of rendering a certain service then they are capable of attracting clientele. These are potential beauty school clients. For example, there are many hair braiders within my area who are braiding hair for a profit, but they do not have a Illinois cosmetology license. These individuals sometimes charge half market price of the services. this is cost saving to the consumer. These individuals are taking business and revenue from the beauty schools such as educators of beauty. The power and control lies within the consumers. they have the option of where they would like to receive the service and how much money they would like to spend.