Domestic airline Virgin Australia is to surcharge passengers up to $6 on domestic flights to cover the new carbon tax, it was revealed in THE AGE newspaper yesterday.
It is not the first price increase blaming the carbon tax for cost-plus price push, and it won’t be the last. But it is, really, the first high-profile retail price rise specifically aimed as the new federal government tax. Others are sure to follow - high profile or not – and likely to include your suppliers; probably the utility companies most obviously where large carbon costs are fully expected. http://www.smh.com.au/opinion/political-news/power-groups-face-huge-carbon-bill-20120228-1u13z.html
Naturally, some sharp vendors might even take the chance to pop a bit more margin into prices whilst having the carbon tax tables out on the desk to recalculate their new price list?
Of course, the government argue that the carbon tax benefits will ultimately make their way back into the pockets of everyday folks via the circumlocution office. But it won’t feel like that when people are forking out repeatedly for new price increases at the sharp end. Nor will it feel like when professional buyers start being inundated with price increase requests. Are you ready with your carbon tax tables, to haggle them down?
The Buyer – posted 29 February 2012
The views of THE BUYER are personal and are not necessarily those of Procurement Professional magazine, BTTB Marketing nor CIPS.