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Article: Is that price increase fair? Some price increases can be justified, but some can't. It's your job to know the difference.(Warren's Wanderings)
- Article from:
- Private Label Buyer
- Article date:
- November 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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How do you handle price increases from your vendors? In the wake of higher costs for fuel, commodities and medical care, it's a question every retailer is asking. For the most part, the answer is precisely what it should be: "Very carefully."
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The question is more complex for private label than it is for the national brands. Some national brands, accustomed to playing it fast and loose with their marketing funds, have cut back on promotion in lieu of raising prices. If that helps them sustain share and stick it to private label, they'll continue it as long as they can. And national brands, generally being larger, are in a better ...