Root out pesky price increases; prepare for more.

Inflation has been all over the news for months. Materials, labor, and shipping have been driving up supplier costs for years. Now, interest rate hikes are adding to the pressure to increase prices.

As costs rise for your suppliers, they pass on the increase to you, the customer, to protect profitability. So odds are good that price increases have worked their way into any multi-year purchase and servce agreements you have pending. 

Here’s what to do.

Look. Push. Plan.

Look for a hidden price increase in the fine print of contract terms and conditions. It might be called an inflaton index. Or a CPI adjustment. Before you sign, remember that small increases add up to big dollars over time: 3% annually is a 12.5% increase after 4 years. 

Push back. Everything is negotiable. It’s unrealistic to expect 0% interest in the current economic environment. But you might get agreement to a smaller increase or a shorter term.

Plan ahead. Put it in the budget. Remind all departments of the changed economic climate and to expect annual price increases. It’s easier for everyone when it’s not a surprise.

Miga Solutions provides the most accurate and actionable pricing information, enabling hospitals to lower their medical equipment total cost of ownership (TCO) by 12-16%. To learn more about how your hospital can save, contact us.