Efforts to pass on appropriate prices

Price pass-through is to appropriately reflect the rise in purchase prices and costs in transactions in sales prices. This makes it possible for businesses to conduct sustainable management, increase wages to employees, and support corporate growth.

• At the Kanagawa Prefectural Support Center, we have set up a support window so that subcontractors can pass on prices appropriately, and support the acquisition of basic knowledge on price negotiations and cost calculation methods.
• "IDEC Yokohama" provides free consultation and advice on issues related to overall management, including price transfer, at one-stop management consultation desks.
• "Subcontracting Komiji" accepts consultations on business concerns for small and medium-sized businesses, sole proprietors, and freelancers.

• Price negotiation support tool (outside site)

Using a tool created by Saitama Prefecture, you can easily create materials that show the effects of major raw material prices and price fluctuations on companies.

• Support tools for price negotiations and pass-through (outside site)

On the website of the Small and Medium Enterprise Agency, a handbook for price negotiations and examples of initiatives by ordering companies are posted.

The “Partnership Building Declaration” aims to increase the added value of the entire supply chain and coexist and co-prosper between large companies and small and medium-sized enterprises. It declares the construction of a new partnership.
[Reference]
“Declaration of Partnership Building” portal site (outside site)
"Declaration of Partnership Building" Information Flyer (PDF: 791KB)

• Public business tie-up funds

As a preferential treatment for small and medium-sized enterprises registered in the Partnership Building Declaration, we have prepared a public business tie-up type fund (Yokohama City Small and Medium Enterprise Loan System), which is a loan to working capital.

• Price Negotiation Promotion Month (external site)

Every March and September are “Price Negotiation Promotion Month” that promotes efforts to encourage SMEs to properly pass on increases in labor and raw material costs to transaction prices. During this period, the government and related organizations will set up guidelines, seminars, and consultation desks to provide support to improve the negotiation skills of companies and prevent problems.

• Implementation of price negotiation promotion month and follow-up survey results (outside site)

For small and medium-sized enterprises, we conduct questionnaires on the implementation status of price negotiations and price pass-through, and disclose the survey results (actuality of price negotiations and price pass-through).

• Guidelines for price negotiations for appropriate pass-through of labor costs (outside site)

Regarding price negotiations related to the transfer of labor costs, the actions to be taken by the ordering party and the contractor and the actions required by the Cabinet Secretariat and the Fair Trade Commission are jointly organized as 12 action guidelines.

• Small and Medium Enterprise Agency Price Negotiation Handbook for Small and Medium Enterprises and Small Businesses (PDF: 4,974KB)

The tools that should be prepared for price negotiations with business partners and points that should be kept in mind when conducting negotiations are summarized in an easy-to-understand manner.

• Small and Medium Enterprise Agency Price Negotiation Know-how and Handbook for Small and Medium Enterprises and Small Businesses (PDF: 6,721KB)

Understand what kind of transaction activities may fall under the violation of laws and regulations of the parent business operator, how it is effective to proceed with negotiations, etc. Can be used as one of the materials for examining specific procedures for negotiations.

• Small and Medium Enterprise Agency Subcontracting Transaction Optimization, Price Negotiation / Pass-through, Government and Public Demand Countermeasures Homepage (outside site)

This is a summary site of the Small and Medium Enterprise Agency regarding price negotiations.