How to Avoid Price Volatility and Increases

by Jun 14, 2021Added Value Services, Sales Resources

Plan ahead to reduce the impact of volatile pricing.

During the last few months, we have seen a significant increase in the price of raw materials and labor. Using a blanket order or pricing agreement is one way to help stabilize your pricing and help keep your customers supplied.

There are many ways to make this happen to keep your risks down.

Set up a usage contract.

We recommend setting a contract for at least 12 months worth of filters to be used over an 18 to 24-month term.

Agree on pricing.

Lock-in pricing for at least 12 months worth of filters. If demand slows, you have time to work down that inventory.

Then, focus on the customer!

Setting this type of agreement will help you to provide better service to your customers. Scheduled shipments and consistent pricing will keep your customers happy and grow your sales!

Sidco can buy materials ahead of time and keep a certain quantity of stock on the shelf for a quick turnaround!