Do you plan on adjusting your prices? A price index offers you precise data so that your price increase is in line with changes taking place in the Netherlands.
1. Choose a price index that suits your business
Statistics Netherlands publishes several price indexes. Frequently used indexes are the Consumer Price Index (CPI), Service Producer Price Index (SPPI), and Producer Price Index (PPI). Price indexes show how the prices of wages, products, and services in the Netherlands have changed per month, quarter or year.
Choose the index that suits your business activity best. By using the same index for every price adjustment, your customers will know how you set your prices.
2. Use base index figure or filters
When you open the table of a CBS price index, you will see the base index figure by default. The CPI, PPI, and SPPI are about all products, wages, or services within that index. The overall CPI figure shows, for example, how much households in the Netherlands spent on products and services. You can then filter within the price index by your spending category, service, or product. How you use the filters differs for each price index.
Combining price indexes
If several different factors determine your prices, you can combine several price indexes for your calculation. See step 5 for a calculation example.
3. Decide how often to adjust your selling price
You can adjust your prices regularly, meaning monthly, quarterly or annually. Or less frequently, for example, once every 5 years. This is up to you.
4. Include the CBS price index in your terms and conditions and contracts
Explain how you index your prices in your general terms and conditions or contracts.
- the name of the index and the reference year (for example: CPI, 2015 = 100)
- the moment of indexation
- how often you intend to adjust prices (monthly, quarterly or annually)
Read more about putting price changes in contracts (in Dutch).
5. Calculate your new selling price
Choose from these options:
6. Announce your price increase or decrease
Before implementing your new prices, announce when the price adjustments will take effect. You can announce this in writing or online. If you want to adjust your prices regularly, always use the same index and period. This way you are clear to your customers.
Take competition into account
Adjusting your prices can have a negative effect on your position in relation to competitors. For instance, if your competitor chooses not to raise prices, you may lose customers.