Today’s blog is by Margaret Stewart, Director of HR, and Administration at SafeSourcing Inc.

Throughout nearly every industry this year and even stemming back the last two years, we have seen prices rise. Much of these cost increases have been attributed to inflation and the rising cost of goods. However, with nearly every good being more expensive, how are companies pulling in record profits? Does the extra money paid at the store works its way up the line through the supply chain and eventually settle somewhere? Based on the profits a few people have made over the last two years, most profits have worked their way up to the top and into the hands of only a select few (Bezos, Musk, etc.).

There are some companies that do not fit that model, thankfully. One such company, Gravity Payments, has been among the few outspoken companies criticizing other companies for lack of pay and wealth distribution. You may recall in 2015, Gravity Payments founder Dan Price decided to forfeit much of his own salary and raised everyone else’s pay up to a minimum of $70k per year. That move put a spotlight on the company and has helped garner positive media attention and associated sales and has also improved employee retention and productivity.

In stark contrast, companies like Amazon who have been forced to pay more for their hourly employees and are currently undermining and fighting unionization attempts, has seem huge corporate profits for the few top people and has gained a vast amount of negative press and is often thought of as a terrible company and workplace. Amazon, when faced with rising costs of employment, however, did not rise to the challenge of cutting CEO pay to pay for workers. It instead raised prices for the consumers. Even Dan Price has said that even if you are giving your employees a 5% raise every year, those employees are ultimately receiving a pay cut due to inflation and the higher costs of goods.

While the costs of labor are rising, companies must work hard to keep up – not only with the rising cost of their own internal labor, but also that of the products and services they use. SafeSourcing can help your organization find the vendors that fit the needs of what you are looking for and help offset rising expenses.

For more information on how SafeSourcing can help your organization or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

Well, if you have not heard we have another product that is rising in price and will continue rise into the near future.  This time it has nothing to do with Covid-19 or the rising inflation.  The wholesale price for eggs is reaching historical highs just in time for Easter and Passover.  This rise is being caused by a highly infectious avian flu that has swept across more than half of the country so far.  Because this flu is so highly contagious and deadly to birds, it is forcing farmers across the country to kill millions of the egg laying birds.  So of course, a lack of birds means a lack of eggs which intern causes prices to rise as the shortage of birds continues.  So far, we are seeing the prices of large eggs from the Midwest are approximately three times higher than last year at this time.  The price of the eggs is now reaching around three dollars a dozen and according to researchers this has only happened one other time.  So far, the flu outbreak has been detected in almost thirty states.  According to some experts the price may not go to much higher because retailers will often take a loss on products like eggs to bring in more traffic into their stores.  The good news is that the bird flu is only affecting our pockets for now and should not affect our health.  According to researchers this type of flu is rarely transmitted to humans.  So, we only need to be concerned with rising costs until this passes.

Interested in learning how SafeSourcing can help your company save money during these and other shortages?  If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

Today’s post is by Dave Wenig, Senior Vice President of Sales, and Services at SafeSourcing Inc

For too long now, we have been experiencing a seller’s market and many organizations’ buyers have had to suffer through price increase after price increase. At SafeSourcing, we have talked with buyers that have reported continuous price increases every month and year-over-year price increases that add up to paying nearly 100% more from one year to the next for the same products.

The question is then is – when will this situation change?

We are noticing that a change is already taking place. The list of categories below is just a sample of the categories that we have sourced for our customers recently. What is interesting about this sample is that the average savings for the categories listed here is over 33%.

• Windows and Doors – 14% savings
• Labels – 32% savings 
• Towels and Wipes – 64% savings 
• Appliances – 16%
• Cappuccino, Tea, and Hot Chocolate – 27% savings 
• Concrete and Pump Cleaner – 64% savings
• Hot Dogs – 24% reduction
• Cigarette racks – 27% reduction 
• Napkins – 56% reduction plus an increase in quality 
• Refrigeration equipment – 31% reduction 
• Creamer etc. – 20% reduction 
• Waste removal – 24% reduction

 Another signal of a change in the markets is that we have seen an increase in the number of vendor participants in RFQs. That increase directly corresponds to a decrease in the number of vendors that are declining citing challenges such as capacity limitations.

For those that are watching closely, the opportunity to claw back against the recent price increases is right in front of you. For those that listen to your vendors, expect the price increases to continue.

For more information, please contact SafeSourcing.

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

What concessions go into your dead net pricing?

Dead net pricing is not always an obvious outcome of your suppler negotiations.

Dead net sales income refers to the income that a retailer earns after considering any discounts that they earn from their supplier. Some vendors will provide allowances, trade credits, and other deals, so using the suppliers list price to calculate income requires adjustments for these factors. The retailer adds the effects of these supplier concessions into the cost of goods sold, and it subtracts this net cost from its sales revenue to get dead net sales income.

If you’d like to learn more about how SafeSourcing goes about collecting information relaitive to  dead net pricing, please contact a SafeSourcing customers services associate.

Sources: http://www.ehow.com/info_8491288_dead-net-sales-income.html#ixzz2BOm9lhDW

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

The Horizontal exchange is an e-marketplace that facilitates transactions for goods and services across several industries. A horizontal e-marketplace connects buyers and sellers across different industries or regions. A horizontal e-marketplace can be used to purchase indirect products such as office equipment or stationery.  Horizontal exchanges focus on leveraging expertise in a particular business process across number of industries. Service industries lend themselves well to a horizontal exchange. The most active horizontal exchanges today are competing in the realm of e-procurement.

The SafeSourcing Supplier Database with over 450,000 suppliers contains the information necessary to support all of your supply needs horizontal, manufacturer or specific vertical.

If you’d like to learn more about how SafeSourcing goes about sourcing vendors or other distribution options, please contact a SafeSourcing customers services associate.

Source: http://EzineArticles.com/3740530