Suppliers fail to achieve desired price increases: global study

Competition between suppliers means almost half fail to increase prices by as much as they aim to, a recent survey from a global consultancy firm has found.

According to The Global Pricing Study 2011, published today by global consultancy firm Simon-Kucher & Partners, 47 per cent of companies fail to achieve their intended price increase. Some 36 per cent of businesses were able to raise prices to 75 per cent of their original target.

As a result vendors were warned that raising prices in line with inflation – the strategy of 68 per cent – could be “fatal”, as they are unlikely to be able to negotiate those increases and risk losing profit.

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