Scoring Points with Supply Reliability

„Given the current geopolitical situation, we had to raise prices significantly within a short period of time. To be as transparent as possible, we sent out formal letters announcing the price increases and followed up with direct talks with our customers. These were important because the effects varied depending on the product and the customer’s situation.

Extent of Increases Questioned
The majority of our customers—over 90 percent—expressed understanding for the measures. Many faced similar challenges themselves, particularly given the situation in the Middle East. Nevertheless, customers reacted in different ways—while for some, supply reliability was the most important factor, others questioned the extent of the price increases for individual products.

A Challenging Phase
This phase was very challenging for our sales teams around the world. It became clear that customers didn’t only care about the message itself, but above all, the way it was communicated. Through open and transparent dialogue, we were able to gain our customers’ acceptance in most cases—even when price increases reached as high as 50 percent. In cases where customers didn’t accept the increases, our goal was to maintain a constructive relationship nonetheless and continue the dialogue.“

Sergio Coleoni, Head of Global Sales, PLA Business Unit