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 4, 2026 · 10m · transcript

Episode 31 of The Buyer's Side digs into should-cost modeling — a procurement technique that breaks down exactly what a product should cost to manufacture, down to the raw material and labor hour. Lucas and Luna walk through how a mid-size auto parts buyer used should-cost analysis to challenge a long-standing supplier's price increase and secure a 12 percent reduction. They cover the data sources required, how the buyer built the model without supplier cooperation, the psychological shift from asking for a discount to proving a fair price, and why this approach is gaining traction…