Supplier price rise notice: object or leave?

What this kind of letter means

Your packaging supplier is raising prices 8.5% from 1 January. You have 30 days to object in writing. Separately, your contract auto-renews for a year on 31 January unless you give 60 days' notice, so that notice date is around 2 December.

Clause 7.2 allows unilateral price revision with notice; clause 7.3 gives a 30-day objection window, after which silence counts as acceptance. The renewal clause runs separately: with 60 days' notice before 31 January 2027, the last day to terminate is about 2 December 2026. These two deadlines interact. Objecting may open a negotiation, but if talks fail after 2 December you'll be locked in for another 12 months.

Things worth checking

• The termination notice date (around 2 December) comes before the objection deadline. Don't let the later date lull you.
• 'Deemed accepted' means silence counts as a yes.
• Ask for evidence of the cost increases. 8.5% is above many current input-cost indices.

Your options

• Object and negotiate. Send written objection, propose a smaller rise or a fixed price for 12 months.
• Get competing quotes. Two quotes from other suppliers strengthen your hand.
• Serve notice to leave. Protects you from auto-renewal while you negotiate. You can only withdraw it later if the supplier agrees.

If you ignore it

The price rise is treated as accepted, and on 31 January you're locked into another 12 months at the higher price.

What usually decides this

You have a contractual right to object within 30 days, and to leave before auto-renewal. Silence is the only way to lose.

Words you might see

• Deemed accepted: If you don't reply, it counts as you agreeing.
• Auto-renewal: The contract extends itself unless you cancel in time.

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