Contract research
Regionaldelivered pricing data
Gather the prices
We collected road salt contract data and geo-mapped delivery locations in select North American regions.
Case Study · Pricing Analysis
Pricing road salt before the negotiation.
A global mining leader that sells road salt as a manufacturing byproduct was preparing to negotiate a new contract with its buyer. Prescouter researched delivered road salt pricing in select North American regions and built a gross margin model to give the client negotiation leverage.
The Client
The client is a global leader in the mining industry that sells road salt generated as a byproduct of its manufacturing process. It wanted to understand market price dynamics before negotiating a new contract with its buyer.
The Challenge
A new contract.
The right price.
To set an accurate pricing strategy, the client needed to understand delivered road salt pricing in the regions where its buyer operates, and how much margin the buyer was making.
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Price
Delivered pricing
In the buyer's regions.
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Cost
Freight and logistics
Road and rail delivery.
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Margin
The buyer's economics
What the market can bear.
Our Approach
Mapping deliveries, modeling every cost.
Logistics mapping
2transport modes modeled
Cost the routes
We calculated distances and costs for delivering road salt by both road and rail.
Margin model
5years of buyer margin trends
Model the margin
The model weighed royalties, freight, fleet maintenance, storage and transport method.
The Outcome
A stronger hand at the table.
Prescouter delivered a comprehensive model with a detailed gross margin analysis and insights from subject matter expert interviews. The analysis revealed a significant increase in the buyer's gross margin over the last five years, creating a favorable opportunity for the client to negotiate a new contract from an informed position.
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Leverage
Rising buyer margin
A five-year upward trend.
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Model
Full cost picture
Royalties, freight and storage.
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Strategy
Informed negotiation
Pricing grounded in data.
In a negotiation, the party that understands the other side's economics sets the terms. A clear margin model turns a hunch into leverage.
Let’s Talk
Do you know what your contract is really worth?
Model market pricing, logistics costs and margins so you can negotiate from a position of strength. Wherever you’re starting from, we’ll help you get there.
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