When pricing is based on optimistic assumptions, costs are most aggressive and prices are most competitive, but profits are put at risk. On the opposite, one may avoid risks by using pessimistic assumptions. This however leads to most conservative cost assessments and a less competitive pricing.
As a typical way out of this dilemma, pricing is done by striking a balance between risk taking and price competitiveness: it is done for average assumptions. However, this solution is not satisfactory, as it results in an average price competitiveness while still having to bear some level of risks about profitability.
Ideal for manufacturers would be to leave this ‘either-or’ logic for an ‘either-and’ one. Indeed, we do not want to choose between competitive pricing or profitability, we want both at once.
In this webinar, we will discuss how to reach that aim and how the FACTON EPC Cost Management solution enables the cost assessment for a variety of production strategies.
Agenda of the webinar:
- Design of various production strategies
- Use of the FACTON EPC to assess the product costs for each production strategy and for various volume scenarios
- Use of the cost results to set price points and to calculate profitability
- Comparison of the production alternatives regarding price competitiveness and profitability
- Identification of the maximum price to pay for the creation of production flexibility
Our experts Claus Hirzmann (CEO Strategic Finance & Independent FACTON Consultant and Representative in France) and Dennis Sokoletski (Senior Consultant | FACTON) will guide you through the webinar. The video will include a demonstration of our FACTON EPC Cost Management solution.
To access the free webinar video, please complete and submit the form on this page. Next, you can view and download the webinar on demand in your browser.
Learn more about Enterprise Product Costing for enterprise-wide standardization of costing processes.