Pricing in the Chemical Industry

In times of volatile raw material costs, chemical companies need to better understand their customers’ buying behaviour and how their business units price products. Escaping the commodity trap or introducing value-based pricing requires a closer connection with your customer and more insights into the end markets in which your customer is operating, allowing you to capture the maximum value through price setting and execution.

Insights into the different steps and players in the value chain of your products reveals which pricing strategies can be useful. Moreover, these insights are instrumental to integrate forward in the value chain, and embed your product in offerings that are relevant further downstream in the value chain and capture even more value.

In order to be successful in your pricing journey, the most effective projects are those that focus on a redefinition of the pricing and sales process in a company-wide manner rather than merely for a product portfolio sub-segment in isolation. These projects include strategy/vision to improve your go-to-market, analytics to build a fact base, process redesign and supporting tools. But above all, changing behaviour and mind-set is crucial for a successful implementation of this exciting pricing journey.