IRN Survey Reveals Greater Business Opportunities; Stable Balance of Power
Margaret Baxter, OESA

Early results from the 2011 IRN Pricing Survey indicate that nearly 70 percent of respondents are seeing greater new business opportunities this year compared to last year. Less than 10 percent of the respondents feel that their power relative to their customers has decreased compared to last year. However, a greater percentage believes their power relative to their own supply base has decreased.

This annual pricing survey of the automotive supplier community gathers information on the dynamics of pricing negotiations between suppliers and their customers. Join OESA and IRN on Dec. 7, 2011, for an executive breakfast briefing where Kim Korth, president and CEO, IRN, Inc., will present survey findings and implications from results obtained from more than 145 survey responses.

Korth will provide suppliers with data for internal strategy sessions as well as productive discussions with customers. Areas covered by the survey include how much customers are requesting, what kind of reductions suppliers are agreeing to, and how behaviors vary by customer group (Chrysler, Ford, General Motors, Honda, Nissan, Toyota and Tier 1s). The event also will cover:

• What concessions suppliers are providing, and in what form
• What suppliers are including in “up front” payments for new business
• How takeover work is impacting supplier business
• How the relative power between suppliers and their customers has shifted
• If and how suppliers are getting price increases

Dan Sharkey, partner, Brooks Wilkins Sharkey & Turco PLLC, will discuss best practices for maximum leverage in pricing negotiations with customers including written communications, “tough” meetings and occasional disputes. He will discuss the dos and don’ts for attempting to obtain price increases, pushing back on requests for price decreases and countering common purchasing techniques.

Event pricing includes a copy of the IRN survey report.

OESA members and industry guests may register in the events section of http://www.oesa.org. For registration assistance, contact Felece Hickman at 248.952.6401 ext. 237 or fhickman@oesa.org. For program information, contact Margaret Baxter at 248.952.6401 ext. 223 or mbaxter@oesa.org.