Should-Cost Models
Build Should-Cost Models for more success at the negotiating table.
MORE CONTROL AND SUCCESS
Know what you should be paying before you meet with suppliers. Accomplish your negotiating objectives armed with accurate and irrefutable data. Should-Cost Models place you in the driver’s seat and almost always lead to lower prices.
ATTRACT THE BEST SUPPLIERS
Modeling attracts the best kind of suppliers. Those that are comfortable with transparency and will talk openly about their costs. They will welcome this approach to negotiating both because their margins are taken into account, and because you’re creating a open relationship based on market facts. The best suppliers will see modeling as a disciplined and fair process.
EASIER THAN EVER
Our members buy everything from electric motors to steel components to wooden pallets. They monitor “should-cost” trends for what they buy using Should-Cost Models which can be created in minutes. Should-Cost Models work by combining commodities and other cost drivers (including supplier overheads and profits) into one finished good or service. ProPurchaser’s software then calculates changes, over time, to all cost drivers so they’re always up to date. In other words, no matter when you decide to refer to one of your should-cost models, you get to see what you should be paying now.
EASY TO MODIFY, SHARE AND UPDATE
Once a Should-Cost Model is created, it goes into automatic pilot, with cost drivers updated and reported on monthly. If you need to make a change, modifying elements within a model is simple. And you can easily share models by emailing charts directly to suppliers / colleagues, or printing them off.