Should cost models
Bottom up models that break each product into raw materials, utilities, labour, overheads, logistics and margin, using validated regional input prices.
Talk to an analystCost modelling
Know What You Should Pay, And Why
Reduce costs with data driven models for smarter, more efficient sourcing strategies that enhance decision-making and performance.
OverviewGet to know us
Cost modelling
A should cost model shows what a product ought to cost based on its raw materials, utilities, labour, overheads, logistics and a fair margin. We build these models from validated input prices and production data, so you negotiate from facts rather than from the supplier's quote.
Make or buy analysis
Alongside should cost models, we compare the full cost of producing in house with buying from suppliers, including capital investment, operating costs and risk, so the decision rests on a clear, like for like comparison.
2,000+Production cost reportsDetailed cost structures by product
3,000+Plant project reportsManufacturing plant economics
Put it to work
Digital Should Cost Model
Know exactly what a product should cost
The Digital Should Cost Model shows how supplier prices are built. It turns engineering and financial inputs into interactive cost breakdowns that support should-cost analysis, scenario comparison and stronger negotiation decisions.
Should cost modelPer tonne
Cost build-up
Raw materialUtilitiesLabourOverheadsLogistics
Should cost
Supplier quote
Room to negotiate
ScenarioRaw material price +10%
Services we offer
What our cost modelling covers
Each engagement is shaped around your categories, regions and goals, and delivered by analysts who specialise in them.
Make or buy evaluation
Side by side comparison of in house production and outsourcing, covering capital expense, operating cost, scale and supply risk.
Talk to an analystCost driver analysis
Identification of the inputs that drive most of your cost and how sensitive your total cost is to changes in each one.
Talk to an analystNegotiation support
Clear gaps between quoted prices and modelled cost, with the evidence your team needs to challenge increases and agree fair pricing.
Talk to an analyst4services
Industries we cover
Across 19 industries
- 01Aerospace and defense
- 02Agriculture and farming
- 03Animal health and nutrition
- 04Automotive and transportation
- 05Business and finance
- 06Chemicals and materials
- 07Construction and infrastructure
- 08Consumer goods and services
- 09Electrical equipment and appliances
- 10Energy and power
- 11Environment and sustainability
- 12Food and beverages
- 13Healthcare and pharmaceuticals
- 14Industrial automation and equipment
- 15Logistics
- 16Manufacturing
- 17Packaging
- 18Science and technology
- 19Technology, media and IT
Need something specific? Talk to an analyst