How to handle an unexpected price increase
As a buyer, it can be stressful when a supplier announces an unexpected price increase. Many buyers will just accept it without raising any questions. But, it does not have to be that way. Try this:
- Express surprise or irritation over the discussion and say “no” firmly. If they push then ask for the basis of the price increase. It is important to let the supplier know right away that you need time to decide whether it is acceptable or not. If you do not let the supplier know about this promptly, the supplier may assume that the new price is acceptable and behave so making your life more difficult.
- Put the conversation in the Dialog Phase and challenge the basis of the price increase aggressively; expose weaknesses in facts, logic, assumptions and positions that have been taken by the seller. Then adjourn to check the power balance and plan your strategy.
- If a price increase is imminent, what will you get in return of equal or more value? Ask for something of value to you in return. Don’t feed the Bears!!!