An email from your supplier announces a new argan oil price starting next month. The first reaction is often either to accept quickly for fear of supply gaps, or to get angry and start searching for alternatives. Both are costly. It is better to treat the notice as the start of a commercial conversation: understand the causes, measure the impact and negotiate the terms.
Why can argan oil prices rise?
The oil is an agricultural product, and its cost depends on factors that may be outside the manufacturer's control:
- Harvest: fruit volumes vary by season with rainfall and climate.
- Demand: higher global demand can intensify competition for raw material.
- Related costs: energy, packaging, transport and labour.
- Producer agreements: fair pay for cooperatives can raise purchase prices.
Knowing the cause helps you negotiate: a temporary seasonal shortage is different from a structural increase.
Step one: ask for written clarification
- Does the increase cover all grades and items, or only some?
- What is the effective date, and are orders already confirmed included?
- Does it apply to the oil alone, or also to filling and freight?
- Is it permanent or seasonal?
- Do other terms (payment, lead times, quality) stay the same?
Calculate the real impact on your margin
Oil is only part of your cost; bottle, label, box, freight and overhead make up the rest. Start from your true landed cost, as in our guide to landed cost for argan oil, then work out:
- how much the unit cost rises;
- how far margin falls if your selling price stays put;
- the selling price needed to keep the same percentage;
- whether your customers can absorb it.
See also unit economics for beauty brands. If you pay in a foreign currency, separate the exchange effect from the price effect.
Your response options
| Option | Idea | What you offer in return |
|---|---|---|
| Transition period | Increase applies to new orders only | Confirm current orders quickly |
| Price hold | Fixed price for a few months | Overall volume commitment |
| Phased rollout | Increase split in two steps | Regular order schedule |
| Spec adjustment | Simpler size or packaging | Accept a simplified spec |
| Quantity tiers | Better price on larger orders | Consolidated orders |
Do not commit to volume you cannot sell just to win a discount: dead stock can cost more than the increase. To lock in price and quantity properly, read our piece on the annual argan oil supply agreement.
The price adjustment clause
The best time to discuss increases is before they happen. Define:
- advance notice long enough to adjust your own prices;
- a limited number of reviews per year;
- where possible, a cap per review;
- a documented basis rather than a free estimate;
- protection of confirmed orders at the original price.
These clauses are negotiated, never guaranteed, but proposing them disciplines both sides.
Passing it on to distributors and customers
- Tell them early: surprise damages trust more than the increase.
- Explain briefly without blaming the supplier.
- Allow one order at the old price for a limited period if your margin can bear it.
- Consider changing size or assortment rather than raising price alone.
- Publish a dated, numbered price list.
When to look for another supplier
One increase is not a reason to switch. But if increases repeat without explanation, or come with weaker quality or late deliveries, compare other offers on identical specifications, not price alone.
FAQ
Can a supplier raise the price on a confirmed order?
It depends on what was agreed in writing, so keep a purchase order stating price and delivery date.
Should I reject the increase outright?
Better to understand it, run the numbers, then propose a realistic alternative.
Can I ask for the supplier's cost breakdown?
You can ask for the main reasons, though you may not get full detail.
How much should I raise my price?
It depends on the oil's share of your total cost, so calculate on the finished product.
For an offer with clear specifications and written terms, send us a quote request.
