How to stop vendors from raising prices after you buy

New owners face a predictable problem about 90 days after closing.

A key supplier sends their first renewal quote, and the price is suddenly 20% higher than what the previous owner paid.

When you ask what changed, you get some version of:

“Those were legacy rates. We’ve adjusted to current market pricing.”

They don’t know if you understand the market, if you have alternatives, or if you’ll just accept the increase.

The key to prevent this from happening is building vendor relationships before they have a chance to test you.

Here are three strategies I recommend:

Strategy 1 - Get personal introductions during due diligence

Before closing, have the seller introduce you to every critical vendor.

In-person visits work best for local suppliers.

For others, schedule three-way calls where the seller vouches for you and the transition.

This accomplishes two things:

1. The vendor sees continuity (not disruption)

2. You inherit the seller’s relationship equity immediately

Strategy 2 - Demonstrate commitment early

Within your first 30 days, reach out to major vendors proactively.

Share your plans for the business.

If you’re planning to scale, tell them you’ll need increased capacity.

Vendors prioritize customers who represent growth opportunities — position yourself as that customer from day one.

Strategy 3 - Build relationships beyond transactions

For your most important vendors, invest in the relationship like you would with a key employee.

• Take them to lunch quarterly

• Visit their facilities

• Understand their challenges

When renewal time comes, instead of just being “the new owner” you’re a partner they want to keep.

(Inside Acquisition Ace, members learn exactly how to manage vendor transitions and protect margins during ownership changes. If you’re serious about acquiring your first business, book a call with our team here.)

When a Vendor Tries to Raise Prices Anyway

Even with strong relationships, some vendors will still test you, and your response matters.

Don’t accept the increase immediately.

Instead, ask questions: “Help me understand what’s driving this change. The previous owner paid X for three years. What’s different now?”

Often, they’ll back down when they realize you’re informed.

If they don’t budge, get quotes from competitors - sometimes the threat of switching is enough.

Other times, you actually need to switch, and that’s okay if the relationship isn’t adding value.

Vendor Relationships Directly Impact Your Margins

A 15% price increase on a major supplier can wipe out thousands in profit annually.

Protect yourself by building relationships early, demonstrating value as a customer, and negotiating from a position of knowledge.

If you want to learn how to negotiate deals (before, during, and after an acquisition) in the Acquisition Ace community with 2,000+ other members…

👉 Book a call with my team to see if you’d be a good fit.

Onward,

— Ben Kelly

Onward, Ben Kelly PS: Check out our latest YouTube video. I show you how I bought a profitable boring business without spending a dime and how you can do it too.