Maximum transparency of product costs

for consistent pricing

Consistent pricing is indispensable to achieve target prices and minimum margins. Thanks to the integration of purchased parts prices, cost centre charges, and costing models, FACTON EPC makes pricing transparent and traceable. The effect of change requests on prices can be evaluated with the variant and version management functions. Transparency in costing and development are key factors for competitive pricing. 

Consistent pricing is indispensable to achieve target prices and minimum margins. In order to succeed in price negotiations, FACTON EPC not only provides detailed breakdowns of the product costs, but presents them in a way that is meaningful for all parties at the negotiating table.

 

Integration of purchased parts prices, cost centre charges, and costing models

For companies that deal with customers who do business through open book accounting, the following main rule applies: a detailed breakdown of the product cost and the sales price must be presented in a format that can easily be read by all parties and is conclusive. FACTON Costing Templates make it easy to integrate purchased parts prices, cost centre charges, and costing models (cost breakdown). The costing software also enables users to transfer internal cost calculations into an external format requested by the buyer. FACTON EPC therefore caters for detailed and seamless cost breakdowns in various formats.

 

Keeping an eye on changes – with integrated variant and version management 

FACTON EPC comes with integrated variant management tools that assist companies whose products and processes are highly complex due to multiple product versions and variants. Using the variant management functions, the effect of change requests on prices can be calculated, and alternative production methods can be evaluated. The resulting effect on the sales price becomes transparent, which is important if such price changes need to be negotiated with customers.

 

In the course of a project, there are often changes to the initial calculation of the product costs, which, in turn, affect the offer made to the customer. Such changes occur in particular in connection with alternative production scenarios. FACTON EPC documents such changes in cost calculations so that manufacturers can see the effect of decisions on costs at all stages of the production process. The relevant information is stored in the form of costing versions that can be compared with each other at any stage. With this information, producers are well prepared to explain price changes to their customers.