# How to Respond to a Supplier Price Increase

> Answer a supplier price increase letter with your own evidence: what you accepted before, what alternatives charge, and which stated reasons your data supports.

Source: https://www.spendcraft.com/solutions/price-increase-response/

Use Case · Price Increase Response

# Answer the letter with evidence.

Your own history, not the supplier's story.

A price increase letter comes with reasons: materials, labor, freight. SpendCraft shows what you accepted before, what comparable items cost from suppliers you already use, and which of the stated reasons your own data supports, so the reply is based on facts.

[Book a demo](https://outlook.office365.com/book/BookaDemo1@spendcraft.com/)[Start a Proof of Value](https://www.spendcraft.com/get-started/)

What Usually Happens

## Where it goes wrong today.

### The letter sets the frame

The supplier names a number and a reason. Without your own history at hand, the conversation starts on their terms.

### The evidence is scattered

Past increases sit in old emails. Prices paid sit in the ERP. Freight sits on the invoices. Pulling it together takes days.

### Letters arrive in batches

When many suppliers write at once, most increases are accepted simply because there is no time to answer each one.

How SpendCraft Works It

## From the data to a decision you own.

Step 1: Start from the letter

Pick the supplier and scope, or start from a file. The Price Increase Caddie pulls the spend and price history behind it.

Step 2: See what you accepted before

Increases over the term, from your own invoices. For example: 7% requested, under 3% a year accepted before.

Step 3: Test the stated reasons

If the letter cites freight, check the freight on your invoices. If it cites materials, compare with what other suppliers you use charge for comparable items.

Step 4: Reply, then keep watching

The Caddie may suggest a response. You decide. Keep the result in a Space, and let a Scout report if prices creep back after award.

What You Work With

## The pieces involved.

### [Price Increase Caddie](https://www.spendcraft.com/product/caddie/#caddie-price-increase)

Works a price increase letter to a decision you own.

### [Price movement Space](https://www.spendcraft.com/product/spaces/)

Where prices are rising across recent purchases.

### [Scouts](https://www.spendcraft.com/product/scans-and-scouts/)

Report when a price creeps back after award.

Questions

## Before you start.

### Does SpendCraft decide whether to accept the increase?

No. The Caddie shows the evidence and may suggest a response. Only your confirmed choice counts.

### What data does it need?

Your spend data, ideally with invoice line detail. Invoice Augmentation recovers line descriptions, quantities and units of measure from invoice PDFs and scans when the ERP dropped them.

### Can it compare suppliers outside our spend?

It compares with suppliers you already use. There are no cross customer benchmarks. Each customer's data is isolated by design.

Related reading: [What is price variance?](https://www.spendcraft.com/blog/what-is-price-variance/) [Your ERP drops the line items. Your invoices do not.](https://www.spendcraft.com/blog/erp-drops-line-items-invoices-dont/)

## See it on your own data.

A Proof of Value works one category or one moment end to end.

[Book a demo](https://outlook.office365.com/book/BookaDemo1@spendcraft.com/)[Start a Proof of Value](https://www.spendcraft.com/get-started/)