Modified Rebuy

Published by MBA Skool Team, Last Updated: February 21, 2015

What is Modified Rebuy?

Modified Rebuy is a buying situation in which an individual or organization purchase goods that have been purchased previously but changes either the supplier or some other elements of the previous order. In this the buyer wants to modify product specifications, terms, prices, suppliers.

In this case the “in supplier” has to protect his account whereas the “out supplier” sees it as a better offer and gain some business. A modified rebuy is less critical and consumes less time. A new product introduction from the earlier version always creates a modified rebuy situation.

The best example for this is 3M. This helps them to always stay ahead in the competition.

Example: - An automobile company may prefer to use an updated version of bearings. For this it will see different suppliers and thus will get many options to choose from and select the best bid.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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