Targeted Increases

“In this challenging market environment, we didn’t just increase prices across the board. Instead, we examined each product line individually in two steps and tailored the adjustments specifically to the actual cost increases we incurred for raw materials, energy, transportation, and availability. At the same time, we adjusted margins that hadn’t been satisfactory up to that point.

Communicate Early
It was important to us to communicate early and transparently. After providing initial preliminary information, our sales teams reached out to customers directly and clearly explained the cost drivers and their implications. In doing so, we made it clear that we aren’t overreacting, but rather making balanced adjustments—while maintaining our commitment to quality, supply reliability, and innovation.

All Contracts Retained
Our customers weren’t happy with the price increases. In the end, they accepted them, however. Many were facing similar challenges themselves. The individual analysis of the product lines and the transparent explanation of the measures were particularly well received. While the first round of adjustments went largely smoothly, the second round required more discussion. We were able to address this issue by providing additional data and detailed explanations. So far, we have retained all contracts.”

Vince Patram, Head of Global Marketing, LAB BU