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WEBINAR: HOW TO REACH A COMPETITIVE AND PROFITABLE ‘COST PLUS‘ PRICING DESPITE PRODUCTION VOLUME UNCERTAINTY (Faction)
Tuesday 27 October 2020, 09:00am - 10:00am
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When pricing is based on optimistic assumptions, costs are most aggressive and prices are most competitive, but profits are put at risk. On the opposite, one may avoid risks by using pessimistic assumptions. This however leads to most conservative cost assessments and a less competitive pricing.

As a typical way out of this dilemma, pricing is done by striking a balance between risk taking and price competitiveness: it is done for average assumptions. However, this solution is not satisfactory, as it results in an average price competitiveness while still having to bear some level of risks about profitability. Ideal for manufacturers would be to leave this ‘either-or’ logic for an ‘either-and’ one. Indeed, we do not want to choose between competitive pricing or profitability, we want both at once.

In this webinar, we will discuss how to reach that aim and how the FACTON Cost Management solution enables the cost assessment for a variety of production strategies.

CLICK HERE TO REGISTER

Agenda of the webinar:

  • Introduction
  • Design of various production strategies
  • Use of the FACTON Cost Management solution to assess the product costs for each production strategy and for various volume scenarios
  • Use of the cost results to set price points and to calculate profitability
  • Comparison of the production alternatives regarding price competitiveness and profitability
  • Identification of the maximum price to pay for the creation of production flexibility
  • Q & A

Our experts Dipl.-Ing. Claus Hirzmann (CEO Strategic Finance & Independent FACTON Consultant and Representative in France) and Dennis Sokoletski (Senior Consultant | FACTON) will guide you through the live webinar that will include a live demonstration of our FACTON EPC Cost Management solution. The webinar ends with a Q&A session.

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