There are several considerations when looking at indexing contract pricing. First, there is uncertainty in including an index. There is risk assumed by both parties in the forecasts on a number of issues. These include labor availability, fuel costs for transport of raw materials, and commodities pricing. The forecasted expectations may work against either party [...]
One of the most common tactics used in contracts are economic price adjustment clauses. These are clauses in contracts which trigger price changes to goods or services in the contract. They are used to: Protect the customer from adverse price actions such as price increases or unanticipated deflation. Take proactive advantage of expected price changes. They [...]
The 2010 business year is coming to a close over the next few weeks, with many companies making last minutes adjustments to their 2011 operational plans. With that in mind, we are beginning a series of short discussions simply titled “Leaving Money On The Table“, covering relevant operational pricing issues. Pricing has been among the most difficult [...]
