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DYNAMIC FORMULA PRICING IN SPECIALTY CHEMICALS MANUFACTURING

DYNAMIC FORMULA PRICING IN SPECIALTY CHEMICALS MANUFACTURING

Pages 4 Pages

Change is the name of the pricing game in specialty chemicals manufacturing. More specifically, cost change. Manufacturers that mix chemicals to formulate an end product are regularly buying the raw ingredients that make up those products on the commodities market. Rather than finding ways to inch up price to maximize margins, manufacturers in this industry are forever in a rat race to stay on top of cost fluctuations. This means closely monitoring commodities indices and fashioning smart agreements with customers that allow for price changes that keep up with the market. Sounds simple, right? For many specialty chemicals manufacturers, not so much. Most rely on a manual process to gather cost changes and the

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