Your supplier has just put their prices up, now what?

Posted in Cost Detective by Marcus on September 24, 2013 No Comments yet

The six questions you should ask when suppliers put their prices up.

 

We often come across this issue with our customers, in fact it is often the trigger to bring us in to help.

Here are questions you should ask;

Does our contract with them allow for price rises?

Do we have an option to come out of the contract?

Are the rises justified, is the market moving in the same direction?

Should we explore other options with other suppliers?

Can we negotiate with our supplier to try and reverse the increases?

Do we have the time for any of this?

 

If you do not have the time to find the answers to these questions, then your costs

will just continue to rise putting more and more pressure on your profitability.

 

You should also be aware, especially for those suppliers that you do not have a contract with, that they can put their prices up without even telling you. Do you check that this is not happening or do you just take it without doing anything about it?

 

The economy is supposedly turning a corner, so many suppliers will be taking the opportunity to put prices up.

Our advice: Just say no.  Keep Calm

 

 

 

If you need help saying no then just drop me a line on Marcus@TheCostDetectives.co.uk

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