Category Cost and Pricing

Here’s all the math you’ll ever need to choose the most optimal pricing strategy for your product categories to steal a march on the competition while mitigating potential supply-side risks.

How SpendEdge Category Intelligence Helps

Leveraging micro measures to drive the big growth

By understanding and metering cost performance at a granular level, we enable a growing number of clients to bring on board the right set of suppliers who can deliver growth.

Unlocking opportunities for cost-efficient and highly secure deals

An in-depth understanding of the benefits and risks gained by working with our experts is helping businesses make effective “go decisions” with respect to various low- and best-cost country markets.

Staying safe and staying informed about cost categories

Our expanding client base of MNCs and SMBs rely on our category pricing intelligence to keep abreast of price trends and make sense of where the category market is headed.

Selecting strategic price points to stay competitive

Over two decades, our clients’ visibility of their suppliers’ pricing structures and associated risks has only gotten better, thanks to our detailed analysis of category cost drivers and risk exposures of competing brands.

Best practices for crafting category plans that work

Our experts carry out detailed assessments of the best practices at peer firms and how they measure up to industry standards. Our clients’ category pricing plans are premised on this incisive understanding.

Realizing more than just dollar savings from category pricing

Since maximizing value from supply networks is the new normal, our experts work toward firming up category intelligence into a strategic function to generate best outcomes for clients in supplier negotiations.

Category Cost and Pricing Offerings

Commodity Price Trends and Outlook

The supply-demand fundamentals of the commodities sector continue to be under stress from price volatilities and geographical factors. By keeping a close eye on commodity price points, businesses can make more accurate decisions and predict the overall direction of the market for commodities. As such, many businesses work with our commodity pricing teams to stay on top of price trends and get a foresight of global risks, and our insights are based on a large number of macroeconomic factors.

Rate Card Benchmarking

Before hitting the purchase button, CPOs these days want to be double sure that they are getting the best possible deals from suppliers. With rate card benchmarking, finding the right partner is no longer a chance-based game but one rooted in conclusive quantitative data and key performance measures drawn from industry bests. Informed by micro-level understandings of factors shaping the commodities landscape, our benchmarking experts assist clients in identifying, evaluating, and onboarding right-fit suppliers to bolster their growth prospects.

Impact of Macroecononomic Factors

Procurement organizations must stay tuned in to the macroeconomic determinants of commodity and category price movements. Just how many CPOs would have the bandwidth for that? Our experts take a more expansive view of the fundamentals driving the observed behavior of commodity prices, and based on this, they undertake a detailed investigation of pricing, price movements, and cost breakdowns. Procurement professionals are making fact-based decisions and navigating through tough times on the back of our research insights.

Cost Components and Price Drivers

Only a hierarchical breakdown of cost elements will reveal the hidden culprits contributing to cost overruns. Identifying key cost drivers and components is at the heart of long-term and sustainable procurement decisions. Our experts offer accurate insights to help clients discover suppliers’ operational cost drivers (e.g., product units) as well as product cost drivers (e.g., materials), so they can source from the best vendor at optimal prices. This is contributing in no small way to our clients’ superior market position.

Why category costing strategy is the sweet spot for your business

Category cost is the grossly overlooked but crucial piece in the marketing jigsaw that influences price points and market growth. That’s all the more reason why you should devise an effective costing strategy – now! Our experts can help you craft it, right away.

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Featured Case Study

How SpendEdge Helped CPG Giant Streamline Contract Manufacturer Selection Process

Challenge: Faced with intense competition and the need to improve profit margins, our client turned to SpendEdge for assistance in overcoming their business challenges. One of the main strategies involved migrating cost-intensive operations to low-cost destinations.

Solution: Our team at SpendEdge assisted the client in streamlining their contract manufacturer selection process. Leveraging our expertise and market research methodology, we identified key contract manufacturers for the client’s ready-to-eat product line.

Result: The client successfully addressed their business challenges and achieved improved profit margins and reduced operating costs. All the while, also enhancing product quality and expanding manufacturing capabilities.