COMPARING OFFERS? ENOUGH SIMPLISTIC CALCULATIONS
MOST OFFER COMPARISONS LAG BEHIND
Offer prices simply reflect the prevailing price level on the market and the capacity utilization of the manufacturer at any given time. Those who still rely on this type of simplistic calculation these days do so at the risk of their competitiveness.
In order to get to the bottom of an offer’s true potential, the only thing that will help you is an unsparing analysis of the actual situation and a bottom-up costing that reflects that analysis. And for this you need the right tool.
A pioneering costing system like the leading program developed by us: poseidon®.
TAKE CHARGE OF YOUR NEGOTIATIONS
In order to be authoritative, you need experience, knowledge and a clear view of your objectives and possibilities. Unmistakably, and to the point. Clarity means leadership. Only those who are able to show their counterpart that they have understood his situation – and who are able to assess every last detail from a cost perspective — are able to successfully manage price negotiations. That’s how you start seeing eye to eye with the person across the table. From there, the discussions generally become much more objective.
REGARDLESS OF WHETHER YOU ARE BUYING OR SELLING
It’s exactly the same when you are in the seller’s position: These days, there’s no way around the fact that you need to give your counterpart, the buyer,
an adequate understanding of the costs.
You need to be able to give a plausible account for all the figures in the CBD – from purchased material to manufacturing costs to the mark-up rates – all the way to the selling price. Everything has to be consistent and reflect the reality of your production process.
BEST PRACTICE COSTING USING THE “GREEN FIELD” APPROACH?
A nice try, and that’s all: done with bulky databases, such costings are generally floated in an attempt to stamp out a potential point of conflict.
In practice they are not always sufficiently robust.
WE PREFER TO PORTRAY THE REALITY
We always start with an unsparing analysis of the current actual state. Genshi Genbutsu – Go and See. We meet the manufacturer at his own current cost perspective, and jointly identify the cost drivers in his pricing. On this basis, we are then able to jointly develop and rapidly implement practical optimization plans. This requires know-how, experience, sound judgment as to what is feasible, along with assertiveness.
It’s something we enjoy.