Managing Price: Tools for Procurement Professionals
  • Home
  • Buy the book
  • Table of contents
  • Resources
  • Contact
    1. Preface
    2. Introduction
      • Savings achievable
    3. Four phases of negotiation
      • Target price
      • Leverage
  • Phase 1. Analysis
    1. Pareto 80/20 rule
      • Spend analysis
      • Political impasses
    2. Data collection
      • Data normalization
    3. Economic indicators
    4. Porter’s five forces
    5. SWOT analysis
    6. Product positioning maps
      • Price versus technology
      • Quality versus support
    7. Substitution
    8. Change in technology
      • Expect progress
      • Disruptive technologies
    9. Cost breakdowns
      • Fixed and variable costs
      • Nonrecurring and overhead costs
      • Material and labor costs
      • Other cost breakdowns
    10. Price discount schedule
    11. Product bundling
    12. Buying groups
    13. Corporate financial ratios
      • Liquidity (solvency or debt-paying ability)
      • Debt
      • Activity (or efficiency)
      • Profitability
  • Phase 2. Models
    1. Per unit of measurement
    2. Bottom-up cost analysis
    3. Analogy
    4. Exchange price
    5. Increased production
    6. Supplier cash flows
    7. Low-cost country
    8. Make or buy
    9. Engineer cost function
    10. Power-sizing model
    11. Learning curve
      • Learning rate
      • Variations
    12. Linear regression
      • Simple linear regression
      • Multiple linear regression
      • Goodness of fit
    13. Aftermarket revenues
      • Simulation
      • Warranty
      • Aftermarket cash flows
  • Phase 3. Negotiation
    1. Supplier presentation
    2. Stress
    3. Timing
    4. Emotions
      • Goodwill
      • Anger
      • Fear
      • Regret
      • Pacification
    5. Fairness and trust
      • Commitments
      • Transparency
    6. Game theory
    7. Mixed motives
    8. Alternative suppliers
    9. Threats
      • Threat of substitution
      • Threat of a new entrant
      • Fractional threats
    10. Market collusion
  • Phase 4. Contract
    1. Long-term agreements
    2. Currency exchange rate
    3. Incoterms
    4. Contract terms and conditions
      • Title page
      • Typical definitions
      • Scope of work
      • Purchase order process
      • Purchase contract management
      • Change management
      • Delivery and acceptance
      • Warranty
      • After sales service
      • Confidentiality
      • Duration
      • Termination
      • Disputes
      • General (miscellaneous)
    5. Escalation
    1. Summary
    2. Case studies
      • Case 1: A negotiation story
      • Case 2: Aircraft windshields
      • Case 3: Personal computers
      • Case 4: Commercial truck tires
      • Case 5: Steel
    3. Selected bibliography
      • Analysis phase
      • Models phase
      • Negotiation phase
      • Contract phase
    4. Appendix
      • Exponents
      • Logarithms
      • Learning curve reference table
    5. Index