Supplier renewal · Pelagos Packaging
Four things to raise, in this order
They opened at +9%. Your leverage is in the invoices and in what your own team already put in writing.
What to raise
The increase is not supported by their own numbers
worth €6,150/yr Open with thisThey asked for 9%. The contract caps the annual increase at the published index, which stood at 3.1% in July. Nothing in the file justifies the gap.
- Their letter cites “rising material and transport costs” with no figures attached.Email, 4 August, from their account manager
- Your last three invoices show unit prices unchanged since March on the two highest-volume lines.Invoices 2026-0412, 0455, 0501
- Clause 6.2 caps indexation at the published index. It has never been applied above it.Contract, page 14
How to put it“Clause 6.2 caps this at the published index, which is 3.1%. Walk me through where the other six points come from.” Then stop talking.
You are owed service credits nobody claimed
€4,100 Trade thisEleven late deliveries, all acknowledged by them in writing. Not one credit was ever claimed, and four of them expire in November.
- Eleven deliveries late by two days or more, four of them in the same fortnight in March.Delivery notes matched to invoices
- Their operations lead replied “noted, this is on us” to your complaint of 18 March.Mail thread, 18–21 March
- Clause 9.4 allows 2% per occurrence, claimable within twelve months.Contract, page 22
How to put itDo not ask for the cash. Offer to waive the credits against holding the current price for twelve months. It costs them nothing today and it costs you nothing you were going to collect.
The notice period traps you for another year
auto-renews 1 Nov Fix the wordingThe contract renews itself unless you write to them 90 days out. That deadline is 30 September, and the same clause is why last year's review never happened.
- Term is 24 months, notice 90 days, renewal automatic and silent.Contract, page 6
- No notice was served in 2025. The current term started by default.Contract file, no correspondence on record
How to put itAsk for 12 months with 60 days' notice. If they refuse the term, take the notice period. The shorter notice is worth more to you than the shorter term.
Two thirds of the volume sits on one line
64% of spend Say nothing yetThis is their leverage, not yours. They know you have no second source approved for the insulated crates. Raising volume commitments before the price is settled hands them the argument.
- One line accounts for 64% of everything you buy from them.Invoices, twelve months
- No alternative supplier has been qualified for that specification.Supplier list
How to put itLeave it alone in this meeting. If they raise it, say the volume is stable and move back to clause 6.2.
Clauses worth changing
24-month term, renewing automatically for a further 24 months unless either party serves written notice 90 days before expiry.
12-month term, renewing for 12 months, notice period reduced to 60 days, renewal confirmed in writing by both parties.
2% credit per late delivery, claimable by written application within 12 months of the occurrence.
Credit applied automatically to the next invoice, no application needed. This is the change that matters more than the percentage.
Annual review, capped at the published inflation index, notified by the supplier in writing.
Same cap, plus the supporting figures supplied with the notification. Keep the cap, close the argument.
What they will push back with
“Material costs have moved a long way since 2024.”
Then show it. Clause 6.2 asks for the figures, and their own invoices have unit prices unchanged since March.
“The late deliveries were a one-off, back in the spring.”
Eleven occurrences across the year, four outside March. Their own operations lead put it in writing.
“A 12-month term makes planning impossible for us.”
Offer 24 months at the current price, with 60 days' notice. Length is worth paying for. Silence on renewal is not.