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Handling Supplier Price Increases Professionally

How to Use Your Zalion Agent to Negotiate Price Hikes Automatically

Every year around the same time, suppliers start announcing price increases — sometimes three, four, or even six percent. 

With your Zalion Agent, you can respond to these messages quickly, confidently, and backed by data — without having to start from scratch every time.


Purpose

Your agent helps you manage price increases professionally — automatically, with solid preparation and data-driven reasoning.
It analyzes the supplier’s message, references relevant market data, and drafts a ready-to-send email for rejection or counter-negotiation.


Step-by-Step Guide

1. Prepare Your Agent for Price Increase Scenarios

In your Zalion Agent, click the settings icon (⚙️) in the top-right corner and select User Preferences.
Here, you can define your language, tone, and other preferences — these will apply to all future negotiations.

2. Activate the Template

Zalion provides a prebuilt prompt template you can use right away.
You’ll find it at the bottom of this article.

Start with the default version for your first few runs — you can always tailor it later to match your style.

3. Upload the Price Increase Letter

Instead of uploading a quote as usual, simply drag and drop the supplier’s price increase letter into your agent or forward it by email.
The agent automatically detects the content and creates a new negotiation case.

4. Review the Result

Within a few seconds, you’ll see that your agent has:

  • Replaced the quote value with the price increase amount (e.g., +5.5%)

  • Generated a summary including relevant market and cost benchmarks such as:

    • Industry average: +2.5%

    • Inflation rate: +2.1%

    • Producer Price Index: below 5.5%

  • Suggested negotiation levers, such as adjusting payment terms.

5. Add Your Own Arguments

You can always add extra context or reasoning — for example:

“The supplier requested +6% last year and received +4%. We’re not willing to increase again.”

Your agent will immediately update the email draft and include your new arguments.

6. Review & Send the Email

The agent then creates a clear, professionally worded email response to the supplier.
You can adjust the content — include or remove certain data points — and send it directly from within Zalion.


Tip

Many users save this setup as their standard workflow for handling supplier price increases.
That way, you can respond to new announcements in just a few minutes — data-driven, confident, and efficient.
Simply forward the letter, review the draft, and send — done.


Summary

With user preference settings and the dedicated price increase template, your Zalion Agent becomes a true negotiation partner.
You’ll prevent unnecessary cost increases, strengthen your position, and save valuable time — without rewriting the same response over and over.


Demo Video

(Watch how it works step by step in the demo video above.)


Appendix: Agent Instructions

Copy those exact instructions to your agent's user preferences!

Objective

When a supplier announces a price increase, the agent should respond professionally, data-driven, and objectively — and automatically create an email task for rejection or negotiation preparation.


Instructions for the Agent

1. Detection & Response

  • When a price increase letter is detected:

    • Automatically create a new email task with the subject line:
      Response to Price Increase [Supplier Name] – Rejection/Review Required

    • The email must be based on a strong, data-backed argumentation (see below).


2. Argumentation Logic

  1. Check Price History

    • Determine whether the supplier has implemented price increases in the past 12–24 months.
      → If yes: Refer to the frequency and cumulative effect
      (“We have already accepted several adjustments...”)
      → If no: Compare with typical industry price trends or available benchmarks.

  2. Consider Market Factors

    • Incorporate relevant data such as:

      • Inflation rate

      • Raw material prices

      • Relevant market indices

  3. Highlight Above-Average Increases

    • If the requested increase exceeds market average, clearly emphasize this in the response.


3. Tone & Style of the Response Email

  • Tone: Formal, respectful, but firm

  • Goal: Reject or postpone the price increase without damaging the supplier relationship

Example Response:

“Thank you for your message. We greatly value our collaboration, but currently see no basis for an additional price adjustment. In recent months, several increases have already been implemented that exceeded the market average. We suggest discussing this matter in a joint meeting to explore potential efficiency improvements.”


4. Task Creation (Mandatory Steps)

Upon detecting a price increase, the agent must:

  1. Create an email task containing the draft response.

  2. Attach supporting data automatically, including:

    • Benchmark comparisons

    • Price history

    • Market trends

  3. If data is missing:
    → Create an additional task titled
    “Verify Price Increase Data.”


5. Fallback Behavior

If insufficient data is available:

  • Request the supplier’s justification for the increase, including relevant cost drivers (e.g., raw material prices, energy costs, wages).

Example Message:

“Please provide the underlying cost drivers or raw material developments to help us assess your price increase request.”