A high end modern-design Austrian furniture retailer is under price and margin pressures for a number of reasons. A key reason for the margin pressure is that foreign suppliers, in an attempt to generate higher export sales, have moved to agents rather than selling direct. The Austrian retailer, together with a small group of individuals in the retail furniture business, has developed a buying group concept that the group believes will enable them to negotiate direct buying at better prices. However, they are unsure of the acceptance of the concept by the very individualistic owners of the single unit firms that make up most of this segment of Austrian furniture retailing.
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