CostRift

Your supplier raised prices.
See the margin impact before you decide.

A supplier price increase is a decision, not an announcement. Quantify the change, see what it does to your gross margin, and decide whether to absorb, pass through, renegotiate, or review sourcing.

What a simple cost change can do

Illustrative numbers, in any currency. They show the shape of the impact on a single item.

Previous supplier cost
$50.00
New supplier cost
$60.00
Supplier cost change
+$10.00 (+20%)
Current selling price
$100.00
Gross margin before
50%
Gross margin if price stays at $100
40%
Target selling price to preserve margin
$120.00
Price adjustment needed
+$20.00 (+20%)

The supplier cost rose 20%, but your gross margin fell from 50% to 40% at an unchanged selling price (a drop of 10 percentage points). Preserving the previous margin requires a 20% price adjustment, from $100 to $120. The calculator shows the exact target for your own numbers.

Decide before you reply

Absorb

Keep the extra cost internally. Customer prices stay stable, but every unabsorbed part of the increase reduces gross margin per unit.

Pass through

Raise the selling price to the target that preserves your previous margin. Use the calculator for the exact number, and weigh customer and competitive reaction.

Renegotiate

Challenge the increase with quantified impact. Phasing, partial increases, or concessions can reduce the hit before you accept it.

Review sourcing

Consider alternatives — but include switching, qualification, freight, and quality costs, not just the unit price.

A short response checklist

  1. Confirm exactly which items the increase affects and the effective date in the notice.
  2. Compute the supplier cost change in absolute terms and as a percentage.
  3. Check the gross-margin impact at your current selling price.
  4. Decide per affected item: absorb, pass through, renegotiate, or review sourcing.
  5. If you respond, respond in writing, with the quantified impact, before the increase takes effect.
  6. Record which items you adjusted and review them at the next supplier review.

See it with your own numbers

Enter your previous cost, the new cost, and your selling price. The calculator shows your margin impact and the target selling price that preserves your previous gross margin.

Open the margin impact calculator

Many items changed at once?

A single example covers one item. To see the margin impact and target selling prices across an entire supplier price list, compare your previous and current lists with CostRift.

Compare your full supplier price list