PurchTips - Edition # 117
How To Negotiate Price Increases
By Charles Dominick, SPSM, SPSM2, SPSM3
Do You Find Price Increases Hard To Negotiate?
January is a common time for supplier price increases. So, today, purchasers are trying, perhaps unsuccessfully, to
negotiate those price increases away.
If a supplier proposes a price increase and tries to use the above type of justification, you can say something like:
"Aluminum increased by 28%, but aluminum only comprises 7% of your price. Considering nothing else, your price should only
go up by 2%."
Do You Want a More Rewarding Procurement Career?
Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.
Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!
Need Better Performance From Your Procurement Team?
Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.
You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.
Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.
Are You Getting The Most Out of Your NLPA Membership?
Members of the NLPA get more than just articles like this by email. As a member, you also get access to:
If you haven't been taking advantage of these benefits, why not log in and start now?
Copyright 2007. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing.
Click here to request republishing permission.
This is the Web-based version of this article. Click here for the printer-friendly version.
Other Editions of PurchTips: