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Bikes R Us was paying $65.75 / unit for aluminum bicycle frames on June 30, 2020. On January 1, 2021, their supplier increased the price
Bikes R Us was paying $65.75 / unit for aluminum bicycle frames on June 30, 2020. On January 1, 2021, their supplier increased the price to $79.20 / unit for the exact same bicycle frames. Using a Market Price Analysis, is this price increase fair or should the buyer negotiate a better deal? Question 5 options: Yes the price increase is fair as the price increase provided by the supplier is 20.5% and the price of aluminum has gone up by 27.8%. Therefor the price increase of the bicycle frames is less than the price increase of the aluminum. No, this price increase is not justified. Inflation has only gone up 4.4% in that time period therefore a price increase of 20.5% is unreasonable. This price increase is not fair and reasonable. A supplier should only increase their prices once a year and it has only been 6 months. Yes this price increase is fair and reasonable. A supplier can charge whatever they want and the buyer should respect that
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