Forward Buying

Forward Buying

Refers to the purchase of goods in quantities greater than immediately needed, with the intent to benefit from favorable pricing or other competitive advantages.

It is commonly adopted by retailers and other businesses to capitalize on discounted prices during promotions, securing inventory for future sale at a potential profit. While often linked to price-driven strategies, forward buying can also involve non-price factors and is a widespread tactic across various sectors of the supply chain, including consumer behavior during sales events.

Related Terms

Market Share

Represents the portion of an industry’s total sales that is accounted for by a specific company

Prestige Pricing

A pricing strategy where products are priced at a premium to signal superior quality and status,

Yield Management

A pricing strategy used to maximize revenue by varying prices based on demand and inventory levels.