Price increases are expected, but the rate at which customers accept increases is higher than it needs to be. The primary issue customers face with price increases is compliance; namely, when a price increase occurs, do you have to accept it? Far too often, the answers range from, “I probably have to accept it,” to, “I want to reject it, but I’m not sure I can and I’m not sure how.” Simply saying “no” to a price increase can work, but it usually doesn’t. Your provider will likely say, “it’s in the contract – we’re allowed to raise your price.” And you know what? They’re right.
The language used in most service agreements allows the provider to raise prices pretty much at any time; usually in the form of annual price increases and off-cycle price increases. Providers tend to justify the various increases by indicating that their costs are going up. So, sorry, your prices are going up. You know the story. As much as you think your options are constrained, they’re not. You CAN have leverage where increases are concerned. It all comes down to the data.
The problem customers face with price increases is the lack of insight that can determine whether or not an increase can be rejected in accordance with the terms of their agreement. This is a difficult task that is mostly impossible for customers. Changes in inventories, seasonal product switch-outs, non-recurring replacement rates, maintenance lines, product mix and invoice volatility are just a few of the components that make price increase compliance such a tough nut to crack. Despite all this complexity, it can be done.
Unirithm uses a modeling process that normalizes the features of your transactions in order to detect the true rate of price increases. By stripping away the masking effect due to service level variation, Unirithm helps bring precision to the price increase problem. We help you understand whether or not your increases are in compliance, and what the impact will be going forward. Why accept a price increase if you don’t have to?