‘Price Creep’ Why do suppliers do it?

The reason for ‘price creep’ can be because, at times, the suppliers HAVE to increase costs due to the amount of difficulty caused around orders being placed, with the following being key points as to why they have to go this route;

1. Orders coming in that are not clear, and without enough specifics for them to work out the correct product. Therefore, more time invested by the supplier with back and forth calls or emails, which then means you as the buyer cannot get their best price.

2. Incorrect items reaching the site, which means they try to resolve the issue without upsetting the customer, even though they feel they were not at fault. This leads to them 'making it back' on the next one.

3. 'Penny pinching' done in an unfair manner.

Supplier: "Oh, they used our price to knock down someone else's" - they then think - next time we will go higher to reduce less when the 'penny pinching' starts.

If you want to find out more about what we do and how we can help eliminate ‘Price Creep’ Give us a call on 01672 596001, drop us an email at kyle@kjbprocurement.com, or message us on here.