If you’re in manufacturing, you’ve probably considered this scenario: your vendors raise materials costs significantly, and you’re committed to delivering products for the next year at a fixed price. If those prices aren’t high enough, you’re going to be facing a major loss.
The Inc.com blog has some thoughts on what to do when this happens. Sure, you can talk to your large customers, explain the situation, and see if you can get them to agree to a price increase. Better than that, however, is inserting a clause into the contract to begin with that lets you automatically increase prices if the material costs rise.