Prices that do not follow their drivers
€160,000
per year, for example on materials
- Materials per year
- €4,000,000
- Raw material share of the price
- 40%
- Raw material index since the last price increase
- −10%
- Price if it follows its driver
- −4%
- Savings per year
- €160,000
When raw material prices rise, the price rises quickly. When they fall, the price often stays put. We recalculate every price against its cost drivers. Cost Driver Tree
Payment terms
more liquidity
- Purchasing volume per year
- €100,000,000
- Payment terms in days
- 30 to
- Interest benefit per year at a 4% cost of capital
- Our fee, one third of the first year's savings
Paid-for services nobody uses
€57,600
per year, for example on licences
- Licences paid for
- 500
- Licences used
- 380
- Price per licence per month
- €40
- Fewer licences, times twelve months
- €57,600
Similar cases: round-the-clock response times that are only needed on weekdays, or paid maintenance that does not take place.