The chemical industry in Europe is facing various economic problems: long life-cycles result in margin decays, Asian competitors bring heavy price-pressure into the market and costs saving measures seem to be exhausted.
However, various methods and possibilities still do exist in order to increase company’s profitability – the most important being value pricing.
The central idea of value pricing is to measure the customers perceived value (i.e. “his willingness to pay up to X”) and to set the price accordingly.
However, investigation on this topic proofed that most companies in the chemical industry have no or limited professional pricing methods since pricing seems to be perceived as not manageable.
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