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Hot Management Tips ...
Fighting Price Increases ...
To try to get suppliers to reduce a proposed price increase, make the negotiations a discussion about their cost increases. Try to get their cost breakdowns, then negotiate for a price reduction on the basis of each of the supplier’s individual costs. Try to get suppliers to admit that some of their costs have not increased significantly. Try to have a specific reduction in your price attached to every item the supplier admits has not increased significantly. The total of the savings could be substantial.
Another way to fight supplier’s price increase is to use the occasion to negotiate delayed payment. At 18% annual interest, an extra month to pay is worth a 1.5% price reduction. Yet it may be easier to negotiate slower payment than to reduce the price.
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