A question posed by a reader:
"My company has a long-term non-contract arrangement with a critical supplier. The supplier is threatening to cease deliveries unless we agree to an immediate 20 per cent price rise for each consignment. What can we do?"
Advisers told us:
• the first thing to do is call a face-to-face meeting to establish the reasons for such a price hike
• try to negotiate a notice period before a price increase applies, to consider the options
• assess the situation quickly – compare prices with sister companies in the group, if you have them, get quotes from alternative suppliers and talk to your peers
What do you think?