[Cries of Despair] Approximately 70% (72.4%) of Subcontractors and Freelancers Have Their Requests for Higher Unit Prices Rejected Amid Rising Prices! Ranking of 'Desperate Outrageous Statements' Heard from Business Partners Announced.

Factum Co., Ltd. (Headquarters: Kumamoto City, Kumamoto Prefecture; Representative Director: Takuya Yanagawa), which provides support for improving cash flow and resolving accounts receivable issues, conducted a 'Fact-Finding Survey on Unit Price Negotiations and Cash Flow Amid Rising Prices' targeting 428 subcontractors (SMEs), freelancers, and sole proprietors nationwide. ■ Background of the Survey The burden on business owners continues to increase due to record-high prices and the introduction of the invoice system. While the government promotes 'appropriate price pass-through,' there is no end to the heartbreaking voices from the field saying, 'I'm afraid of losing work, so I can't ask for a price increase' or 'Even if I negotiate, I'm brushed off.' This survey was conducted to visualize the 'unreasonable reality of unit price negotiations' faced by vulnerable subcontractors and sole proprietors, and to educate business owners on measures to protect their own cash flow. ■ Survey Results Summary Among business owners who negotiated for a unit price increase within the past year, approximately 70% (72.4%) responded that their request for a price increase was 'rejected or postponed.' The number one 'desperate remark' heard from business partners during unit price negotiations was, 'Then we'll switch to a cheaper vendor (38.5%).' 78.5% of business owners answered that they have 'felt a crisis of cash shortage (profitable bankruptcy) due to unit prices not rising.' ■ Detailed Survey Results [Topic 1] The despair of not being able to say 'raise prices.' Even if you do, over 70% are 'rejected.' When asked, 'Have you approached your business partner about raising your compensation (unit price) within the past year?', 65.2% answered 'Yes, I have.' However, only 27.6% of those 'had their desired price increase accepted.' A combined 72.4% face the harsh reality of being 'completely rejected (41.1%)' or 'partially increased or postponed (31.3%).' [Topic 2] Anger and sadness. Ranking of 'desperate outrageous statements' made by business partners. When asked in a free-response format about the most shocking 'desperate remark' made by a business partner's representative when a price increase was rejected or reduced, a vivid reality that could be seen as an abuse of a superior bargaining position emerged. 1st place (38.5%): 'Then we'll switch to a cheaper vendor (crowdsourcing, etc.).' 2nd place (26.2%): 'We're struggling too, so you should also make an effort (work for free).' 3rd place (15.8%): 'I can agree to the price increase, but I'll halve the order quantity from next time.' 'I was laughed at with 'There are plenty of people who can replace you,' and they've been ignoring my subsequent contact.' (IT engineer, 30s) 'With the invoice registration as an opportunity, I was forced to discount the consumption tax amount, resulting in a de facto unit price decrease.' (Construction sole proprietor, 40s) 'While saying 'We have no budget,' the president of that company was showing off the delivery of a luxury car on social media, which made me furious.' (Designer, 20s) [Topic 3] The fear of 'cash shortage' caused by stagnant unit prices. When asked, 'Have you ever felt a crisis in your own livelihood or your company's cash flow due to unit prices not rising (or being underpriced)?', a full 78.5% answered 'Felt it very much (45.1%)' or 'Felt it somewhat (33.4%).' Dependence on unreasonable business partners directly threatens not only the mental health of management but also the survival of the business (cash flow). ■ Factum Co., Ltd.'s Opinion and Countermeasures A business partner who keeps unit prices low with the threat of 'We'll ask another company' cannot be considered a healthy business partner in the medium to long term. To reduce dependence on such companies, it is necessary to proactively seek new clients while also engaging in 'price negotiations with a firm attitude.' Furthermore, in preparation for cases where a unit price increase is not achieved and cash flow deteriorates, securing 'safe financing options' other than bank loans, such as methods for early monetization of accounts receivable, is the greatest defense measure for subcontractors and freelancers to survive. ■ About Citing Graph Images and Data The data and graph images in this release are free to be cited and reproduced by media and bloggers. ■ Survey Overview Survey Theme: Fact-Finding Survey on Unit Price Negotiations and Cash Flow Amid Rising Prices Survey Period: May 20, 2026 - June 1, 2026 Survey Target: Subcontractors (SMEs) nationwide, freelancers, and sole proprietors Valid Responses: 428 Survey Method: Company customer survey ■ Company Overview Company Name: Factum Co., Ltd. Representative: Representative Director Takuya Yanagawa Location: 4-13-26 Obayama, Chuo-ku, Kumamoto City, Kumamoto Prefecture Business Description: Factoring, cash flow improvement consulting, accounts receivable management and collection flow construction support, etc. Official website: [https://factum.co.jp/]