Silmid Case Study
Silmid is a specialist distributor of silicones, sealants, adhesives, lubricants, cleaning agents, and surface treatments. Sil-Mid Limited was formed in November 1979 and began trading in January 1980.
Their core business has traditionally been within the Aerospace industry, but now extends to include Automotive, Rail, Marine, Renewable energy, Engineering, Defence, Electronics, and Oil and Gas exploration.
- Silmid was managing pricing using their core business system.
- A cost plus pricing structure was in place, which meant that if costs went down (due to e.g. purchasing negotiating a better deal), so did the price to the end customer, even if the customer was still prepared to buy at the higher price).
- This meant that Silmid were unnecessarily giving away margin.
- Their core business system also did not allow for much flexibility when it came to managing prices for their customers, as well as making it difficult to plan pricing changes ahead of time as it only captured the latest price.
- Silmid selected the BlackCurve pricing tool to allow them to easily implement more advanced pricing rules and de-couple the link between cost and price.
- Silmid will use the tool to allow them to segment their customers more effectively, manage pricing tests, and ultimately to tease out additional margin improvements.