Seller market

The term seller's market describes a market situation in which there is a very large excess demand. The producers of goods or services cannot - often only temporarily - provide enough products to meet customer demand.

The market status of a seller's market is very time-dependent and, in the case of many products or services, only exists for a few days or weeks a year.

The seller's market is characterized by comparatively high contribution margins and sales prices as well as by temporarily reduced or discontinued marketing efforts. Since there are more customers than goods anyway, excessive application is not necessary.

Examples of seller markets

tourism - The markets that are only changing into a sellers' market for a short time include essential areas of tourism and the hotel industry: If flight and hotel capacities are scarce during the main travel season or if there is a major trade fair, substantial peak surcharges are levied.

Rental apartments - The rental housing market in some metropolitan areas is one of the markets that have turned more and more into a seller (here: rental apartment provider) market in the long term.

Summary

  • a temporary or permanent market situation
  • excess demand or insufficient market supply
  • a very inflation-prone situation
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