How One Buyer Used Should-Cost Modeling to Negotiate a 12 Percent Price Cut

The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions · Jun 13, 2026 · 8m · transcript

In this episode of The Buyer's Side, Lucas and Luna dive into the story of a procurement director at a mid-sized medical device manufacturer who used should-cost modeling to negotiate a 12 percent price reduction on precision-machined components. They walk through how the buyer built a bottom-up cost model by analyzing raw material costs, labor rates, machine time, and overhead, then used that data to challenge a long-standing supplier's pricing. The episode covers the specific techniques involved: disassembling the supplier's quote line by line, benchmarking labor rates…