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Expert views

Paul Schlimgen: The value of real-time pricing

MAY 08, 2015    
A revolutionary daily alloy surcharge pricing model is the topic of a presentation by commercial head of Outokumpu Nirosta Paul Schlimgen at the Outokumpu Experience. “We think this is the most innovative pricing model in the world of stainless steel,” Schlimgen says. “It empowers our customers with real-time pricing and enables solutions that are tailor-made for their business models.”

The new model consists of three options, he explains, and that delivers enormous flexibility to customers navigating volatile markets. “It gives them full flexibility to customize their pricing,” he says. “That is critically important. One size really does not fit all.”

Listening to our customers

Implemented in January 2014 for European flat product customers, the model initially consisted of two options. Intensive customer feedback drove the launch of a third option in June 2014.

“We listen to our customers,” Schlimgen says, “and we learn from them. They said one more option would be very beneficial to them.”

The new approach is uniquely responsive to volatile markets. “When raw material pricing fluctuates, you see that directly in our daily price,” he says. “Our customer is empowered by real-time pricing.”

Customers are enjoying the benefits of the new model. They particularly appreciate the opportunities created by the three pricing options. “Some customer groups are using it and they’re benefitting from it,” Schlimgen says. “It’s going very well.”