The supplier has been with you nine years. The last competitive quote was 2016.

Most firms defend their own prices line by line, then wave through a supplier's annual uplift without a conversation. The compounding is where the margin quietly goes.

By Steve 5 min read
Abstract bridge artwork for The supplier has been with you nine years. The last competitive quote was 2016.

Ask a management team how they set prices and you will usually get a considered answer: positioning, willingness to pay, what the last three tenders told them. Ask how they set what they pay, and the answer is often a shrug and a name. The relationship works. The uplift letter arrives in November. Someone signs it. This is not laziness. It is a predictable asymmetry of attention. Revenue is visible, contested and reported weekly. Input cost is diffuse, arrives as dozens of separate lines, and each individual increase is too…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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