>So a 16% hike when current US inflation is 3-4%?

When was the last price hike? Looking at historical inflation and working backwards, you only need to start at around late 2021 to get 16% cumulative inflation. In other words if they didn't raise their prices for 4 years, they'd be at par with inflation.

edit: another commenter mentioned the last price hike was around 4 years ago, so it's indeed in line with inflation: https://news.ycombinator.com/item?id=46192356

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redserk 21 hours ago | parent [-]

Since when does any organization factor in inflation for renewals from vendors?!

All the purchase renewal decisions I've been part of have been:

1) Will they budge on renewal rates?

2) Does an alternative vendor exist?

3) Is the increase reasonable compared to the cost of switching to an alternative?

4) Do we anticipate future price increases, and if so, how can we prepare ourselves to consider a switch in the future?

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gruez 21 hours ago | parent | next [-]

>Since when does any organization factor in inflation for renewals from vendors?!

Don't ask me, ask the person who posed the question of inflation in the first place. That said...

>All the purchase renewal decisions I've been part of have been:

All but one of the reasons you listed are tied to inflation in some way. Inflation affects everything in the economy, so a company that doesn't raise prices in line with it is losing money. Even SaaS businesses with low marginal costs aren't exempt, because they still need to pay salaries for developers and support staff, both of which roughly track inflation. Therefore if business see price hikes that raise with inflation, they can assume that competitors will raise prices as well, and it's not going to be worth switching unless they're already on the fence for some other reason.

	▲	marcosdumay 15 hours ago \| parent [-]
		> All but one of the reasons you listed are tied to inflation in some way. Only if you assert that all prices move together at the same velocity. It's usually a reasonable thing to assert, when the economy isn't in a complete revolution. And it's a really bad premise right now.

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simonjgreen 5 hours ago | parent | prev [-]

Any experienced procurement or FP&A team will be doing this