Receiving a Price Increase If you’re on the other end of a price increase, here are some tips to help you mitigate it as much as possible: Be a detective, not defensive. Playing the “how could you do this to me?” card will get you only so far. Instead of getting defensive, be curious. Ask questions that will help you understand the reason, the timing, the circumstances under which it would not apply, etc. You’re looking for the weaker arguments and justifications that can help you refute their strongest arguments. Do your homework. If someone is citing a 25% increase due to inflation, is that reasonable considering where inflation rates are? If you haven’t done your homework, then all you can do is rely on the information presented by the other side. Knowing your marketplace and market conditions will put you in a stronger position to refute outlandish claims.
What do you want in return? Any change to an existing agreement opens the door to change anything you don’t like about that agreement — and a price increase is no exception. You can use that increase to help you get other things that you want, which may offset some or all of the price increase. So, before you blindly or begrudgingly accept an increase, use it to trade for something of value to you.
Whether you’re contemplating a price increase or anticipating receiving one, be prepared. But also, keep in mind that many of the drivers of today’s price increases are temporary, and the pendulum will swing the other way at some point. When it does, you still want to be in a strong position.
21
Made with FlippingBook - Online magazine maker