In a volatile market like the one we are currently experiencing, it is more important than ever to maintain your pricing. This can be difficult when suppliers seem to be increasing their prices every month. However, there are strategies that you can put into place to help offset these price hikes and keep your margins healthy. This blog post will discuss some of the most effective ways to maintain your pricing in a volatile market.
Longer Forecasting
The best way to maintain your pricing is to stay ahead of the game by increasing your forecasting timeline. This means you should lean into your inventory and buy more when you can! You should also constantly monitor your supply chain for any changes impacting your costs. If you see that one of your key suppliers is about to increase their prices, you can proactively adjust your buying timeline and place orders before the increase takes effect. Doing this will help you avoid being caught off guard by price increases and help you maintain your prices.
Communicate with Suppliers
Another vital strategy for maintaining your pricing is to communicate with your suppliers. Let them know that you know the market conditions and are looking for ways to offset any potential packaging price increases. This open communication will let them know that you are serious about maintaining your end-of-line packaging pricing, and they may be more likely to work with you on price increases.
If you are proactive and communicate effectively with your suppliers, you can maintain your pricing in a volatile market. By staying ahead of the game and being open with your suppliers, you can keep your margins healthy and avoid being caught off guard by price hikes.
Buy Local Stock
This current market is volatile, and prices are constantly changing. This can be a challenge for businesses that want to maintain their pricing structure. Another way to offset price hikes and keep your margins healthy is by buying local stock options or having a stock option as a backup plan.
When you buy local stock options, you buy from a supplier who makes strategic buys before any price increase occurs. As a result, you can maintain your price for a more extended period and avoid frequent price increases with custom packaging options.
Adjust Packaging to Match Price Increases
In some cases, you may not be able to avoid a price increase from your supplier. When this happens, you can offset the impact of the price hike by pivoting from your current strategy and adjusting your packaging. For example, if you typically use a specific type of tape that has recently gone up in price, you can switch to a cheaper alternative. This will help you keep your overall costs down and maintain your pricing.
This is a great time to reach out to your supplier, discuss any challenges you may be facing with your current package and see where your overall cost in the box can decrease. When you bring in a packaging expert, you will likely see your overall cost per package decrease while the product will continue to be safe and secure.
Consider Increasing Volume for Discounts
Another way to offset supplier price increases is to increase your volume. This will allow you to take advantage of economies of scale and get discounts from your suppliers. This strategy can be especially effective if you have multiple suppliers that you can source from. By buying additional products, you can negotiate better prices.
Price increases are a reality in today's market, and it can be challenging to maintain your pricing. However, by longer forecasting, communicating with suppliers, buying local stock, and adjusting your packaging to match price increases, you can maintain your pricing and keep your margins healthy. You can also take advantage of economies of scale and get discounts from your suppliers by increasing your volume. These strategies will help you navigate the volatile market and maintain your pricing.
What are some other ways you have found to be effective in maintaining your pricing? Leave a comment below and let us know!
Thanks for Reading!
This blog post was brought to you by Rapid Packaging, a leading distributor of end-of-line packaging products and solutions. For more information on our products and services, visit our website or contact us today. Thanks for reading!
