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Value Pricing in the Chemical Industry

Format: Article

Posted in Quantify Customer Value

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The chemical industry in Europe is working hard on the improvement of their profitability base. But while innovation and complexity management are heavily discussed by the industry’s top managers, the most powerful lever to increase profitability is being ignored by many – value pricing. In this article we look into the possible benefits of value pricing, the effective BASF approach and the problems posed by a customer management focusing on the perceived strategic importance of customers rather than their contribution margins.

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