RBM Plastics: higher prices and volume commitments on a key account

Case study summary

Pricing Insight helped RBM Plastics, an Australian PVC compound manufacturer, prepare for a strategic customer negotiation focused on price reductions and increased volume. Customer Value Discovery and negotiation planning reframed the conversation around supply continuity, technical support and operational risk. The project account reports higher average selling prices than the prior year and increased volume commitments.

Results at a glance

• Client: RBM Plastics.
• Industry: PVC compounds and industrial manufacturing.
• Customer relationship in scope: Prysmian Group.
• Approach: Customer Value Discovery and negotiation planning.
• Outcome status: Realised commercial outcomes, as reported by Pricing Insight.
• Reported outcomes: Higher average selling prices and increased volume commitments.
• Financial value and exact price movement: Not publicly disclosed.

What pricing challenge did RBM Plastics face?

The customer’s procurement team requested lower prices in exchange for increased volume, with the possibility of moving supply to lower-cost competitors. RBM had invested in production capacity and needed to protect the economics of a significant relationship.

Invoice-price comparisons did not capture RBM’s flexibility, technical support or role in maintaining supply. Management understood those advantages but needed a structured, customer-relevant case to explain their value and prepare its negotiating position.

What did Pricing Insight do?

1. Assessed the relationship and commercial exposure

Pricing Insight reviewed stakeholder perspectives, correspondence, commercial information and operational history to understand the account’s value, future potential and risks.

2. Mapped customer value and operational risk

A half-day Customer Value Discovery workshop identified more than 20 value drivers. These included formulation support, quality assurance, delivery responsiveness, flexible stockholding and production flexibility. The team modelled the customer’s exposure to downtime, using a potential sales-at-risk figure of up to A$1m a day. That exposure was an input to the value case, not a measured saving or financial benefit delivered by the engagement.

3. Prepared commercial options and negotiation responses

Pricing Insight developed price-volume-service options and conditional benefits linked to forecasting, packaging returns and technical collaboration. Pre-negotiation coaching aligned the team’s messages and rehearsed responses to procurement pressure.

What changed following the work?

The project account reports that RBM secured higher average selling prices than the prior year and increased volume commitments with clearer forward planning. It also describes a stronger recognition of RBM’s strategic role and an improved position for formalising the relationship.

A volume commitment is not the same as shipped volume or collected revenue. No incremental profit amount, exact price percentage or subsequent fulfilment of those commitments is publicly disclosed.

How were the outcomes measured?

• Commercial comparison: Average selling prices reported as higher than the prior year.
• Commitment measure: Increased customer volume commitments reported.
• Financial measure: No quantified EBIT, EBITDA or gross-profit gain publicly stated.
• Modelled exposure: Potential customer downtime exposure supported the negotiation case; it was not counted as realised benefit.

The public case study does not disclose the exact comparison dates, product-mix adjustment, signed contract terms or independent validation. The outcomes are reported by Pricing Insight and should not be interpreted as independently audited financial results.

How does this work relate to the Pricing Periodic Table?

Relevant capabilities in Ron Wood’s Pricing Periodic Table include Value quantification (Vq, 03), Delivery reliability and value at risk (Dr, 05), Concession planning (Cn, 36) and Key-account negotiation plans (Ka, 39). These elements explain the engagement through the current framework; they are not a claim that the present table was used at the time.

What can similar manufacturers learn?

1. Compare the customer’s total operational exposure, not only invoice prices.
2. Distinguish a modelled risk from a saving actually achieved.
3. Prepare conditional commercial options before discussing concessions.
4. Record volume commitments separately from the revenue and margin eventually realised.

Related services and next step

Explore Pricing Diagnostic and Quick Wins and other Pricing Insight case studies.

Discuss a value-based pricing or negotiation challenge with Pricing Insight.