Commodities are so dynamic that prices change dramatically from day to day. When markets are on the move, we have a clear understanding of the factors that make up the commodity price and how to systemically develop a plan for the purchase. We provide a practical direction of evaluating fundamental and technical information that impacts the commodity. First we want to know and study the price history and other relevant data to generate a window on the future to reach a strategy. We provide concepts of managing commodity buy and sell decisions and using your inventory levels as a means to buy over a time period at price levels averaging below the market as well as how to negotiate concessions from suppliers of the cash commodity. We deliver processes as an experienced company to understand the key steps leading towards a well thought out plan for a commodity, including how to negotiate a favorable price concession for the Buyer.
STEPPING OUTSIDE THE BOX
Collaborating with specific suppliers to determine a price method not in line with usual market mentality.
You do not want to disturb or change an entire market, only your portion that may lead to a competitive advantage.
METHODS OF PRICING
1. Formula pricing
2. Rebate pricing
3. Negotiated firm discounts off traditional pricing
4. Historical pricing with maximum levels established