Vendors are posting record profits while raising prices and buyers have had enough!
Dave Wenig is the Senior Vice President of Sales and Services at SafeSourcing Inc
SafeSourcing, as an organization, is 100% focused on getting our customers a great price for the goods and services they need. So, as we have watched our customers get price increase after price increase, we have been increasingly frustrated. We are constantly collaborating with our customers to help them use our eProcurement service to get fair pricing.
More recently, that has taken a turn. It is painfully obvious from our perspective that many vendors are increasing costs well beyond what is necessary based on the actual market conditions. Many vendors who have repeatedly increased pricing in the last year for a variety of products have also reported record profits for the same time period.
We have plenty of examples. One that comes to mind is a large provider of corrugate who notified our customer of a very large price increase. When we finished an RFQ event for those items, we found that they were about 22% higher than their closet competitors. Another example is hot dogs. We recently sourced hot dogs and found that the vendor had passed along price increases which would have put them 24% over where their competitors quoted in the RFQ.
Those are just a couple of examples, but it is happening in about every purchasing category right now. SafeSourcing will be focusing on a different example in upcoming blog posts and digging deeper into each.
Our customers are tired of these unjustified price increases and false excuses. If you are tired of it too, let us work together to push back against them. We are doing this now for many customers and can for any buyer.
For more information, please contact SafeSourcing.