Competitive pressure hinders passing on costs

Three out of four companies cannot (fully) pass on cost increases to customers, a recent survey shows. The expected worsening of the competitive position is the main reason for this. 

The survey, conducted by CBS in cooperation with KVK, shows that almost 28 per cent of companies fear a deterioration of their competitive position and 20 per cent expect to sell less if cost increases are fully passed on. Moreover, price agreements in contracts limit the possibility of passing on cost increases. Only about a quarter of companies say they do not experience cost increases or are able to pass them on in full.

The survey also showed that over 5 per cent of entrepreneurs perceive their debt burden as problematic. However, almost 95 per cent consider their debt burden bearable. About 11 per cent of businesses report a higher debt burden than last year, without being problematic. Over 2 per cent of businesses experience both a higher debt burden and problems with it.

Cbs.nl