create new ideas to help increase revenue from chemical products

Strategies for improving the sales of chemical products

The chemical manufacturing industry has experienced many problems and is expected to face more problems in the next few years, with the increase of regulations and the unpredictability of the market. In today’s environment, it is becoming more and more difficult to maintain a reasonable profit margin. A few companies have achieved success through breakthrough products, but revolutionary innovation is becoming increasingly difficult to detect.

Chemical manufacturing companies have to sacrifice operational efficiency to reduce costs. One key area that is often overlooked is the optimization of sales strategies. Despite rising costs, many companies continue to use traditional sales methods.

Traditional sales methods

Previously, chemical manufacturers developed specialized chemical products to meet the requirements of individual customers. To help justify the high cost of these specialized products, the company includes complementary comprehensive support services. However, these services are available to every customer, not just to “top” customers. Profitability is affected by the same level of service to all customers.

Innovative methods

Some chemical manufacturing companies have created innovative ideas to help increase revenue.

Multiple service levels: different from the traditional method of bundling the same service with each purchase, it subdivides and realizes multiple service levels at different price points according to customer demand. When purchasing basic products at a low cost, standard automated services should be used in delivery and payment selection. In addition to these basic services, additional services should be provided to paying customers. Data analysis can help companies provide different additional services for specific customers.

Product pricing: chemical products are considered pure commodities by many people. Chemical manufacturers can use this thinking to separate their services from their products. This will enable the company to meet the low-cost needs of customers willing to buy in bulk, without the need for additional services. This allows chemicals to be ordered from machine to machine, eliminating any human interference.

Independent business departments: the introduction of independent business departments can achieve “two sides”, which can not only meet the demand of low price, but also meet the additional services required by “top” customers. In this way, customers willing to pay more for extra services can remain professional

Countermeasures to improve the performance of chemical manufacturing industry

There is no doubt that the major players in the chemical industry are trying to bring profitable expansion to their business. Industry experts believe that due to the increasingly fierce competition among participants and market uncertainty, the struggle will continue for several years.

Operational plans are needed to provide growth and increase profits for companies in the chemical manufacturing industry

Find a balance between price and volume

It is a myth that a large number of chemical sales can bring higher profits to the company. The uncertainty of chemical production market makes it difficult to understand the needs of consumers. It shows that the demand for conventional chemicals has declined significantly in the past few years.

Manufacturers will benefit from improved pricing strategies over increased sales.

Product mix

It turns out that one of the best ways to stay relevant and competitive is to improve or expand your portfolio. Some of the best-known chemical companies have begun to merge and expand, such as Bayer and Dow. By expanding their current product portfolio, they can gain more consumer groups and have access to more market segments, thus improving the profitability of the company.

Digital adoption

The so-called digital revolution has revolutionized the chemical manufacturing industry from the operational stage to the sales stage. It allows manufacturers to develop from “product sellers” through the integration of manufacturing and business processes, as well as the optimization of sales and marketing strategies. Although the implementation of machine learning and artificial intelligence reduces the dependence on human resources, it enhances the overall function of chemical manufacturing process.

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