Wednesday, 28 May 2008

Pricing in a rising market

With the current strong concerns over rising prices of fuel and raw materials, it is becoming more important than ever to be aware of market movements. There is considerable talk of pressure on margins because of rising costs, but we should never forget that some suppliers will be looking to increase margins during this time. They will rightly assume that we are expecting prices to rise - but that many people will not know by how much they should rise, and will consequently ask for a price that both covers costs and increases profits.

Perfectly reasonable, but as buyers we need to be on our toes to watch out for it.

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