Base Materials & Metals

Simon-Kucher & Partners advises leading companies in the field of materials & metals in their pricing, marketing and sales strategies. The common mind-set of sales organizations in materials & metals is that “the market sets the price”. Although prices are market driven our Simon-Kucher experts have identified a number of pricing and sales levers that allow you to outperform competition and enhance your profitability. Simon-Kucher supports market leaders in developing successful pricing strategies based on supply curve considerations, competitive dynamics and value based price logic. We optimize contract elements and structures as well as surcharges.. We support our clients in large account negotiations based on a systematic balance of power assessment. We develop sales strategies, structures, processes and governance and help our clients’ sales teams to work more effectively and implement prices more consistently.

Success in the highly contested field of materials & metals is strongly linked to a company’s ability to balance volume and price and manage cost dynamics against price dynamics. A high and increasing market volatility makes this a challenging task. Especially as volatility not only leads to fluctuations in spot prices, but also impacts customer’s expectations with regard to contract prices and future price developments. Companies with professional price management, efficient pricing processes and an effective sales management are clearly more profitable in this environment than those without.

This is what we offer:

  • Pricing strategies in contested markets (incl. changing industry practices)
  • Dynamic base price management
  • Value based pricing architecture
  • Price increase initiatives
  • Contract management
  • Price negotiation and deal support at large accounts
  • Customer engagement models
  • Pricing and sales audits
  • Pricing and sales excellence programs
  • Price systems for guidance and monitoring

Selected clients

  • Almatis
  • Cemex
  • Constellium
  • DEW
  • NatSteel
  • Novelis
  • Omya
  • Rio Tinto
  • Schmolz + Bickenbach