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Sudden price increase of the supplier, what to do?

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  • Sudden price increase of the supplier, what to do?

    Price increases cannot be avoided. As in the fuel industry, the price of gasoline is largely dependent on the prices in the world market. What if there is a sudden increase of price for a supply that you expect regularly? If the price increase is substantial, that would cause panic for manufacturers because their production cost will increase and they cannot just increase their price because that would shake the market. In some instances, some plants would slow down their production particularly those with temp workers.

  • #2
    Re: Sudden price increase of the supplier, what to do?

    Yes, I guess that is the most practical way to go about it since just going on as normal only with raised prices would definitely not work since a big change needs to be addressed with a big compromise. I think in cases like these is where good leaders really shine because it takes a lot of intelligence to balance everything when all the factors are going haywire.

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    • #3
      Re: Sudden price increase of the supplier, what to do?

      As a buyer, when there is an increase in prices of the goods I buy, I think the main thing to do is to contact my supplier and have a heart-to-heart talk with the person on how the increase in price won't affect my purchases that much. Doing so will make me get some sort of discount on my next purchases as a result of the increase in prices which means that I can't buy it the price that the supplier is selling it to other customers.

      As a supplier, when there is an increase in the prices of the products that I supply, I would use the theory of price discrimination to ensure that I do not sell the same price to everyone. By differentiating the prices, I would give my consistent buyers some little increase in price while the general buyers would feel the full burden of the increase in prices.

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