Last November, Rouge surveyed 47 of its suppliers for 64 contracts covering events during the Games period between July and September this year.
The suppliers predicted 37 of the contracts would increase in price, with an average increase of 16.5%. The predicted price increases ranged from 2% to 57%.
Out of the contracts predicted to rise in price, nine (24%) specifically cited high demand during the Olympics as the reason.
But 25 (68%) said their price increases would be due to the general rate of inflation, and particularly rising fuel costs.
Rouge has now put out all the contracts to tender and found that in practice, most suppliers have not significantly increased their costs.
It says this is because most suppliers are keen to provide competitive costs to long-term clients, despite the Olympic period.
Nathan Homan, co-founder of Rouge said: "Clearly the long-term economic outlook has ultimately been of greater concern to suppliers than the short term opportunities the Olympics have presented. We are pleased that our suppliers have taken the long-view and this has been welcomed by all of our clients."
What is your experience – have agencies experienced supplier price increases? Have suppliers put their rates up due to the Games? To leave a comment register and let us know your thoughts.
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