Software is obviously less impacted by inflation increases
Chris Gabriel, chief strategy officer, Sapphire Systems
Vendor CEOs have been vocal about the need to raise prices and have advised channel partners to do the same. Looking at both the products and services you offer, how critical is the situation for your business?
Software vendors are passing on some cost increases for software maintenance and of course we have to pass those through, but we take an intelligent approach to our customers and our partnership. Software is obviously less impacted by supply chain, freight, and other inflation increases so most of our vendors are taking an intelligent approach to price rises.
To what extent do you expect to absorb recent/ongoing cost increases around headcount and hardware/software prices, at least in the short term?
I think most customers recognise that inflation is impacting the whole country, so we are reflecting cost increases we have to pass on, but also ensuring we are as efficient a business as possible so we can deliver to our customers in the most cost effective way we can. We have been driving efficiency measures as a business and also adopting internal automation to ensure we can be a partner who delivers real value in a way that optimises the cost to the customer.
When dealing with big increases in your overheads and the price of the products you carry, what's your top tip for protecting margins while - at the same time - keeping customers happy?
Be efficient inside your business. Customers will understand a price rise as long as they see you acting in an efficient and fair way. The most important point is to be transparent and honest.
"Costs across every area are only going one way. Up!! Utilize managing director Guy Hocking weighs in on the following page....
