The Ministry of Economy, Trade and Industry (METI) has compiled the results of a survey on whether SMEs are able to properly negotiate and pass on price increases with major companies with which they do business. Of these, two major companies received responses such as "We were unable to negotiate for fear of canceling transactions," which was the lowest rating in price negotiations.
By May, the Ministry of Economy, Trade and Industry (METI) conducted a questionnaire survey of small and medium-sized enterprises on the status of price negotiations with major companies with which they do business and the status of price pass-through, and ranked 5 major companies on a four-point scale according to the content of the responses.
As a result, 116 of the 4 major companies received the highest evaluation of price negotiations, such as "they agreed to negotiate."
On the other hand, two companies, Sekisui Chemical, a major chemical manufacturer, and Toenec, a subsidiary of Chubu Electric Power and an equipment company, received the lowest evaluation, with responses such as "We were unable to negotiate for fear of canceling the transaction."
Regarding price pass-through, four companies received the highest evaluation as "passing on more than 116% on average," while no company received the lowest evaluation due to many responses such as "reduced transaction price."
The Ministry of Economy, Trade and Industry (METI) will encourage companies with low ratings to voluntarily improve their trading conditions and provide guidance and advice.