Last week, we asked: How much pricing pressure are you experiencing from your suppliers?
- Significant: 35.01%
- Moderate: 43.07%
- Minimal: 13.6%
- None: 6.05%
- They’re dropping prices: 2.27%
Inflation stings. Clearly, many organizations are taking pricing to offset what is likely dismal volume. Remember, a 1% pricing increase can translate to a 7% to 15% profit increase. If you’re feeling the squeeze, consider taking pricing as well. If you can’t, try renegotiating with suppliers and get concessions elsewhere (payment terms, swinging volume their way, etc.). If you simply stand by and become a price taker, you’ll quickly find yourself scrambling for desperate measures.
Mike Figliuolo is managing director of thoughtLEADERS and author of “One Piece of Paper: The Simple Approach to Powerful, Personal Leadership.”