A cutting issue

4 September 2008

Blog pic By Jake Kanter

The latest issue of SM sees news of yet another business giant imposing price cuts on its suppliers. Clothing retailer Matalan is requesting a 2 per cent “contribution” so it can fund marketing campaigns, franchising and shop-floor refurbishments.

It joins a raft of construction firms, who have all asked for reductions this year alone. And according to Stuart Blake, compliance manager at Talbot Solicitors, this behaviour will get worse before it gets better. It must be very worrying news for vendors.

Is imposing price cuts on suppliers a good way to make quick savings? Is it something your organisation would consider doing?

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