The first way to deal with the price hike is to know the exact reason which could be increase in raw material cost , labour cost , transportation cost Next should be to analyse the budgets and quantity that we need Based on these information we can now sit with the vendor / agency and negotiate- one good way is to play around with the economics of scale and make him understand that long term business can help him smooth out the cost which he is feeling he will incure A good deal would be to have a win win for both parties

To manage a sudden supplier price hike, I’d first assess the cost impact on our budget, identifying which areas are most affected. Then, I’d initiate discussions with the supplier, seeking to understand the reasons behind the increase and negotiate for phased increases, bulk discounts, or flexible payment terms. Meanwhile, I’d evaluate alternative suppliers to maintain competitive pricing. Internally, I’d streamline operations to reduce costs, potentially offsetting the increase. If necessary, I’d also consider slight price adjustments for our products, ensuring communication with key suppliers to prevent similar issues in the future.

Analysing the situation with respect to the supplier and buyer's perspective is very much important conducting the market research based on the prices hike and getting the background information about all the prices that are included in manufacturing a product which the supplier is selling. Apart from that conducting CBA is very much essential and referring to the contracting terms and clauses that are mutually agreed. First the buyer must try to retain the existing price or look for the alternative ideas and ensure the relationship between suppliers is maintained

- First of all allow the supplier to ask for whatever they wish, it could be any sort of increase. To be straight forward asking for a price increase is the right of the supplier and allow them to speak - Call for a physical meeting instead of handling this virtually through emails - Take the supplier for a business dinner and understand the real root cause of price increase - Dont decline the request in the first attempt - Seek first to understand, collect data from supplier and then deep-dive - Analyse the data and start the negotiation with data points, Note: Without precise data, negotiation would fail - Always Negotiation has to be a Win-Win approach - Supplier relationship is key for business and strategy perspective as well

To handle a sudden price hike from a key supplier, consider the following steps: 1. Assess the Situation Understanding the supplier's perspective can help in negotiations. 2. Review Contract Terms: Check your existing contract for clauses related to price changes. 3. Open Communication: Express your concerns and seek clarification on the reasons for the increase. 4. Negotiate: to find a more favorable price or explore options for discounts or better payment terms. 5. Explore Alternatives: Research other suppliers who may offer competitive pricing. 6. Evaluate Budget Impact. 7. Build Long-Term Relationships 8. Consider Cost-Saving Measures However, most important way to manage the price is maintaining a productive relationship with vendor.