Services
Methodology to approach negotiating corrugated needs
Methodology to approach negotiating corrugated needs
Methodology to approach negotiating corrugated needs
There are two distinct steps we take to drive bottom-line savings:
- Evaluation and collection of your current specifications and pricing. GSC Corrugate Advisors will calculate the baseline cost for each package design. These baseline costs will be evaluated and analyzed to set the lowest cost and determine potential savings. If these estimated savings are of interest to pursue, we will host a meeting with your corrugated purchasing executives to share our method and the potential savings opportunity.
- Guidance and negotiation of pricing agreements. After GSC Corrugate Advisors determines the potential savings, we will guide you through the process of negotiating the baseline price to drive your supplier cost down. After collecting your specifications and determining an industry baseline, we negotiate with the supplier to offer its lowest baseline price.
market conditions
Methodology to approach negotiating corrugated needs
Methodology to approach negotiating corrugated needs
Utilizing our formula pricing method, we can negotiate our pricing according to a specified market barometer. Most corrugated manufacturers approach their clients individually to base price increases on regional corrugated converters costs.
GSC Corrugate Advisors highly recommends that our clients engage in contracts that set triggers to determine when and how much prices move. Monthly reviews of the industry and triggers provide you with the necessary information to determine pricing adjustments. Your corrugated pricing will follow the market movements and eliminate the need to renegotiate pricing with every paper movement in the marketplace.
All price movements will only affect a fixed ratio of the total cost of packaging. Corrugated manufactures will communicate price changes by announcing a percentage price increase in the market.
GSC Corrugate Advisors will help you avoid haggling over pricing every time there is a price movement in the market. We peg the market at contract inception and create the contract language to adjust prices at agreed upon movements in the market. You will not need to haggle over a price during a contract period!
baseline savings evaluation
Methodology to approach negotiating corrugated needs
baseline savings evaluation
Prior to any contract or consulting fees, we will calculate the savings that your organization can realize by utilizing our corrugated negotiation methods. We complete the baseline analysis upfront because we want our clients to know the bottom line savings prior to engaging us for our services.
What we need from our clients is, good information!
- corrugated specs
- length, width, board height, flute, colors
- any additional up charges
- annual volumes
- prices paid to each supplier for each box
- prices FOB or delivered
After you provide us with this information we will present the analysis and our findings to your management team, at no cost to you. We are so confident that our approach will generate bottom-line savings we don’t feel the need to charge for our analysis. Also keep in mind, that we are only compensated on a percentage of the savings that we generate, so for the analysis and our services, there are no costs to our clients, only savings!
We look forward to the prospect of discussing our capabilities in greater detail.