An international wholesaler in office goods
Read about this case.
One of our challenges was as follows. One of the most traditional office products we have in our large product range is the binder (lever arch file). Predominantly manufactured in Germany and also in eastern Europe. The premium brands know that most companies often use the same binders annually and as such the price of these products goes up by 3% annually to maximise profits. The feeling that the price increases were always unfair was always present. The issue was that this was extremely hard to prove.
Now that we have included the developments of raw material prices (cardboard, steel and polypropylene) into the WTP should costing software, we can compare the raw material costs to our own purchasing prices. It became verry clear to us that the producer earns an additional € 0.05 – 0.10 for the exact same product annually. That is not how you handle loyal customers in our opinion. These negotiations resulted in a cost reduction of more than € 15.000. Also we are now convinced that the prices will not be rising anytime soon. The WTP software provides us with data based insights that is very useful to us.
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