The Supplier Who Raised Prices for Two Years Without Telling Anyone

Purchase prices drift upward in small increments nobody notices. A price history turns that from an invisible leak into a negotiation.

Farida buys from fourteen suppliers for her general store in Bhopal. In two years, one of them raised prices eleven times, never by more than a few rupees, always without announcement. Cumulatively it came to 23%.

She only found out because she happened to keep an old invoice in a drawer and compared it to a new one.

Small Increases Are Invisible By Design

Nobody notices a ₹4 rise on a ₹180 item. You are checking that the delivery matches the order, not running a comparison against a price you last saw eleven weeks ago.

• Each individual increase is below your threshold of attention
• You have no easy reference for what you paid last time
• Different suppliers deliver the same product at different prices
• Discounts and schemes change quietly, and a withdrawn scheme is a price rise
• By the time it is obvious, it is normal — and much harder to argue about

He never lied to me. He just never mentioned it, and I never asked.

What a Price History Gives You

The value is not in catching anyone out. It is that it turns an assumption into a fact you can put on a table.

• What you paid for this item, every time, in order
• Which supplier is cheapest for each product right now
• Which prices have moved more than general inflation would explain
• What your true landed cost is, once transport is included
• A basis for negotiation that does not rely on your memory against theirs

Farida did not change suppliers. She showed the eleven-increase history to the one who had raised prices, asked a straightforward question, and had 9% reversed within a week. He had simply been raising prices for as long as nobody objected — which is a rational thing for a supplier to do.

A supplier ₹3 cheaper per unit who delivers weekly beats one ₹5 cheaper who delivers monthly and forces you to hold four times the stock. Include delivery frequency, minimum order size, return terms and reliability. The cheapest invoice is regularly the most expensive supplier.

A Practical Supplier Review

Once a quarter, an hour is enough.

• List your top twenty purchase lines by total spend
• For each, check the price trend over the last four purchases
• Flag anything that has risen more than 8–10% over a year
• For the three largest, ask a second supplier to quote
• Take your evidence to the incumbent before switching — most will move

Switching is usually the worse outcome. A supplier who knows you track prices behaves differently from one who assumes you do not, and that behavioural change is worth more than any single renegotiation.

The Other Half: Reliability

Price is easy to measure, so it gets all the attention. Reliability costs more and is rarely tracked at all.

• How often does a delivery arrive short, and against which lines?
• How often is it late, and does late mean a stockout on a fast mover?
• Are damaged goods replaced without an argument?
• Is the invoice accurate, or does it need checking every time?

A supplier whose deliveries are 5% short is charging you 5% more, whatever the invoice says.

Arali keeps purchase records per supplier so price history and short deliveries are visible without a drawer full of old invoices. If you have never compared what you pay today against what you paid a year ago, one afternoon with your top twenty lines usually pays for itself.

Frequently asked questions

How do I track supplier price increases in a small shop?

Keep a purchase record per supplier per product so you can see the last four prices for any line. Increases arrive in amounts small enough to fall below your attention — a few rupees at a time — and only become visible against a history. Review your top twenty lines by spend once a quarter.

How do I compare two suppliers properly?

Compare landed cost, not invoice price. Include delivery frequency, minimum order size, transport, return terms and reliability. A supplier ₹3 cheaper per unit delivering weekly beats one ₹5 cheaper delivering monthly, because the second forces you to hold four times the stock and freeze the cash.

Should I switch suppliers when I find I have been overcharged?

Usually not immediately. Take the price history to the incumbent and ask — most reverse a meaningful part of it, because raising prices while nobody objects is simply rational behaviour on their side. A supplier who learns you track prices behaves differently afterwards, which is worth more than a single renegotiation.

What supplier problems cost more than price?

Short and late deliveries. A supplier whose deliveries run 5% short is charging you 5% more regardless of the invoice, and a late delivery that causes a stockout on a fast-moving item costs the whole basket, not one line. Track short deliveries and lateness alongside price.