Price adjustment clause in purchasing - what is it?

A price adjustment clause in purchasing is a contractual agreement that allows the price of a product or service to be adjusted retrospectively - depending on the development of certain cost factors. This clause is often used in long-term supply contracts where prices can change during the term.

The price adjustment is usually based on objective indicators such as raw material prices, wage costs or energy prices. A common form is the so-called sliding price clause, in which the price is adjusted proportionately to the development of a certain index or cost factor.

What does a price adjustment clause help with?

In purchasing, a price adjustment clause serves several purposes:

1.planning security: it creates clarity about possible price developments over time.

2.risk sharing: cost increases or decreases are shared fairly between supplier and customer.

3.long-term cooperation: transparent regulations ensure that the relationship between the two parties remains stable even in the event of price fluctuations.

4.hedging in volatile markets: A price adjustment clause is an effective instrument for managing economic burdens, especially when commodity or energy prices fluctuate significantly.

Why is transparency in price adjustments so important?

For a price adjustment clause to work, all parties must be able to understand how and why a price changes. Without transparent data sources and a clear basis for calculation, there is a risk of conflict, mistrust or incorrect decisions in purchasing.

How the costdata tools support you

The costdata tools help you to bring transparency to the topic of price adjustment clauses. With our benchmark data, you can see at a glance how key cost factors such as wages, material prices, machine costs or energy costs have changed over time.

This objective and regularly updated data enables you to check price adjustments in a well-founded manner, negotiate realistically and ensure fair contractual terms. This gives you a reliable basis for discussions with suppliers - and strengthens your position in purchasing.

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