Price evaluation
Price adjustment
The price evaluation always follows the principle of finding a price’s market value. First, the ratio of competitive price to market value must be calculated as precisely as possible.
An in-house target cost calculation based on this will result in the actual price. If the cost variance is rather high, one must try to set the maximum price, even in the eye of serious consequences.
If prices need adjustment, there are several variants to choose from. Examples could be:
- Quantity exceeded or undershot
- Increased energy costs
- Higher tool costs
- Costs in light of a change
- Costs of temporary storage
- Increased labour costs
- Weight change
- Development costs
All these costs must be checked and priced if necessary.
Price evaluation
The price evaluation always follows the principle of finding a price’s market value. First, the ratio of competitive price to market value must be calculated as precisely as possible.
An in-house target cost calculation based on this will result in the actual price. If the cost variance is rather high, one must try to set the maximum price, even in the eye of serious consequences.
Price adjustment
If prices need adjustment, there are several variants to choose from. Examples could be:
- Quantity exceeded or undershot
- Increased energy costs
- Higher tool costs
- Costs in light of a change
- Costs of temporary storage
- Increased labour costs
- Weight change
- Development costs
All these costs must be checked and priced if necessary.
Solvency
Risk management
To improve solvency, there are several measures one can take. However, they should never be phrased in an exaggerated manner.
These measures include things like the delay of supplier payments, the granting of cash discounts or partial payments to accelerate cash flows from the customer, and carrying out portfolio analyses to detect allegedly negative products.
The point here is to first become aware of all potential risks, in addition to recognizing and classifying them as such. One possibility is to perform a modified form of FMEA. Possible errors and their influence are analyzed and a risk indicator designated. Appropriate measures must be presented as well to reduce the risks. These activities could potentially result in positive credit with banks and insurance companies.
Solvency
To improve solvency, there are several measures one can take. However, they should never be phrased in an exaggerated manner.
These measures include things like the delay of supplier payments, the granting of cash discounts or partial payments to accelerate cash flows from the customer, and carrying out portfolio analyses to detect allegedly negative products.
Risk management
The point here is to first become aware of all potential risks, in addition to recognizing and classifying them as such. One possibility is to perform a modified form of FMEA. Possible errors and their influence are analyzed and a risk indicator designated. Appropriate measures must be presented as well to reduce the risks. These activities could potentially result in positive credit with banks and insurance companies.
Increase in company value
Increasing the value of a company is a central topic and can be easily implemented from a technical point of view. For example, you might consider patents when it comes technical applications. Here you will often find what you are looking for. Another important point is the possibility to acquire funding, which is be available in nearly every sector.
Though one should always be aware that such measures can also catch the market’s attention. And since the competition never sleeps, it is necessary to tread carefully.
