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Using Should-Be Costs Models in Price Negotiations

Buyers in manufacturing companies routinely negotiate pricing with suppliers, whether for sourcing or design changes. Best practices dictate that buyers should know what a component should cost before they receive quotes from suppliers.

Should-be cost models are the basis for optimum price negotiations. Unfortunately many buyers do not know how to use this information for collaborative discussions that lead to optimum pricing.

Complete the form below to learn:

  • How to analyze supplier quotes against should-be cost models
  • Questions to ask to improve your understanding of supplier cost structures
  • Steps for successful price negotiations

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