The U.S. Consumer Price Index rose 1.5% in December.

February 8th, 2011

Accordingly many companies sited this as a primary reason for raising their prices. For one, this author does not buy it and neither should you whether you are a consumer or a company.

For every commodity that rises there are also commodities that fall. For every company that raises their prices to their end user be it consumer or company, there are others that want your business bad enough to keep prices stable if not lower them. The issue is that companies have to be willing to put the work in if they want to keep prices down. Too many companies continue to operate in a business as usual manner. It?s pretty easy to spot when individuals or companies operate from the ?this is how I learned it and this is how I do it? point of view. Some clues are;

1.?They buy from the same suppliers over and over again.
2.?The do not have a? view of their contracts.
3.?They do not have a view of their performance against those contracts.
4.?They do not have a view of additional sources of supply.
5.?They do not put their products and services out to bid on a regular basis.
6.?They do not have basic specifications.

I was reading an article in U.S. TODAY last Friday February 4th titled Prices starting to creep higher By Paul Davidson. The sub title was Businesses hit point where they can?t absorb higher costs. The article sited several manufacturers and retailers that were raising their prices as a result of increased costs.

Here?s a promise. If you can?t figure out how to keep your costs down, call us at SafeSourcing because we can.? As a matter of fact call me personally 480-773-7524 or email me at

We look forward to your comments.

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