Showing posts with label price increases negotiation. Show all posts
Showing posts with label price increases negotiation. Show all posts

Wednesday 11 January 2017

Food Suppliers Squeezed As Recovering Supermarkets Push To Remain Competitive

Latest news of cost-increase resistance by buyers raise the following issues for NAMs:

Where at: Surprise, surprise! Whilst pragmatic NAMs do not expect retail buyers to roll over and accept cost-price increases, some state of equilibrium will be required to minimise supplier concentration and less choice…

Where headed: …if fewer, more powerful suppliers emerge in the coming months

Effect on you: Smaller players in niche categories can survive by optimising their (realistic) place in the market

Action: Time to revisit fundamentals of real consumer demand vs. available alternatives to define core proposition. Then numbers, numbers, numbers to calculate cost and value and build a financial rationale