{"ok":true,"canonical_url":"https://dealroom.so/glossary/commodity","api_url":"https://dealroom.so/api/public/glossary/commodity","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"commodity","term":"Commodity","group":"Reading the business","definition":"A basic good or raw material that is interchangeable with other goods of the same type. For a buyer, selling a commodity means you compete primarily on price, making it harder to differentiate your business.","what_it_means":"Businesses that sell commodities often have lower profit margins and limited pricing power. As a buyer, evaluate if the business has any unique value proposition, customer relationships, or operational efficiencies that protect it from pure price competition. Look for ways to add value beyond the basic product.","url":"https://dealroom.so/glossary/commodity","official_sources":[],"related":[{"slug":"profit-margin","term":"Profit margin","url":"https://dealroom.so/glossary/profit-margin"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"market-analysis","term":"Market analysis","url":"https://dealroom.so/glossary/market-analysis"}],"related_questions":[]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Commodity","url":"https://dealroom.so/glossary/commodity","source_type":"DealRoom Data"}}