1. Why Price increase?
Recently one of my EU client turn to me saying that his china supplier increasing price with 21% in 9 month.
The reason to increase the price are:
2. Consequence?
The price increasing cause less competitive in market and no profit
3. how to negotiate?
Recently one of my EU client turn to me saying that his china supplier increasing price with 21% in 9 month.
The reason to increase the price are:
- aluminium price increasing a lot
- silicon price increasing a lot
- paper price increasing a lot
2. Consequence?
The price increasing cause less competitive in market and no profit
3. how to negotiate?
- a) Visualize the supplier's price increasing information in 9 months
- b) Checking the material price trend in 9 months
- C) Compare a & b, to see if the price change is match
- d) use the comparison as bullet point to negotiate with supplier
After we doing a quick and simply analysis, we found the increasing is not reasonable.
The material price is not increasing as much as what supplier request.
We show this list to supplier, and finally aligned with a reasonable price which both party acceptable.
Price increasing always there to handle with, and unreasonable price increasing will eat buyer's profit.
I hope this give some hints to you on how to handle price increasing request from supplier. and also welcome to hear your case if any.
The material price is not increasing as much as what supplier request.
We show this list to supplier, and finally aligned with a reasonable price which both party acceptable.
Price increasing always there to handle with, and unreasonable price increasing will eat buyer's profit.
I hope this give some hints to you on how to handle price increasing request from supplier. and also welcome to hear your case if any.