Technology vendors have hiked prices 30% over a 12-month period, according to a new article from analyst firm Gartner.
Author Jo Ann Rosenberger cites an application maintenance service provider that submits "an annual job renewal statement with an 18% increase in maintenance and support costs," which is due to labor shortages. work, which has increased the company's internal personnel costs.
In another example, a SaaS provider's contract renewal had increased by 21% with no clear explanation. After investigation, the huge price increase was blamed on inflation, which the company said it had to pass on to its customers.
Inflation Responsible for Rising Costs
In response to these "vague and general answers [which] can in no way serve as sufficient detail to explain or justify the fairness of these unexpected increases," Rosenberger puts forward a couple of proposals that could help companies combat price gouging. .
The point of sale can be a particularly busy time when a lot of information is being shared, and it's the perfect opportunity to introduce some price increases, he explains. Try to slow down the process and digest each piece of information, and take the time to ask yourself why prices have gone up. Don't forget to bring the most recent financial data to help support your case.
Says Rosenberger, "Executive-level meetings are an opportunity to send the message loud and clear that pricing and cost play a key role in how you see the future of the supplier relationship."
The second option, which may not be right for everyone, is to wait until financial incentives become more common. Periods like the end of the quarter and the end of the year will force companies to meet their targets, and you may be able to get a better deal as a result.