{"id":12278,"date":"2025-09-29T10:00:42","date_gmt":"2025-09-29T08:00:42","guid":{"rendered":"https:\/\/sxe-consulting.com\/?p=12278"},"modified":"2025-10-01T11:07:24","modified_gmt":"2025-10-01T09:07:24","slug":"lower-prices-to-fill-plants-and-boost-profitability","status":"publish","type":"post","link":"https:\/\/sxe-consulting.com\/en\/baisser-ses-prix-pour-remplir-lusine-et-augmenter-sa-rentabilite\/","title":{"rendered":"Lowering your prices to fill the factory\u2026 and increase your profitability"},"content":{"rendered":"<p data-start=\"302\" data-end=\"642\"><strong data-start=\"302\" data-end=\"358\">Can you really earn more by selling at a lower price?<\/strong><br data-start=\"358\" data-end=\"361\" \/>At first glance, it seems counter-intuitive. Yet in the manufacturing industry, lowering your prices can be a formidably effective strategy for improving your financial results. Provided you control your costs\u2026 and above all optimise your industrial processes.<\/p>\n<h2 data-start=\"931\" data-end=\"1021\">The economic reasoning: absorbing fixed costs and generating marginal profit<\/h2>\n<p data-start=\"1023\" data-end=\"1324\">In a <strong data-start=\"1032\" data-end=\"1061\">manufacturing company<\/strong>, a large proportion of the expenses consists of <strong data-start=\"1111\" data-end=\"1126\">fixed costs<\/strong> : rent, salaries, depreciation, baseline energy\u2026 These costs are borne <strong data-start=\"1205\" data-end=\"1247\">regardless of production volume<\/strong>. Whether you produce at 50% or 100% of capacity, you pay them anyway.<\/p>\n<p data-start=\"1326\" data-end=\"1375\">This is where industrial logic comes into play:<\/p>\n<ul data-start=\"1377\" data-end=\"1759\">\n<li data-start=\"1377\" data-end=\"1589\">\n<p data-start=\"1379\" data-end=\"1589\">Once the <strong data-start=\"1391\" data-end=\"1415\">break-even point<\/strong> is reached (the point at which your sales cover all your fixed costs), <strong data-start=\"1480\" data-end=\"1523\">each additional unit produced and sold<\/strong> generates only variable costs (materials, energy, logistics).<\/p>\n<\/li>\n<li data-start=\"1590\" data-end=\"1759\">\n<p data-start=\"1592\" data-end=\"1759\">If you lower your prices slightly to <strong data-start=\"1633\" data-end=\"1656\">fill your factory<\/strong>, you absorb your fixed costs better. You thereby create <strong data-start=\"1712\" data-end=\"1758\">a leverage effect on your overall margin<\/strong>.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1761\" data-end=\"1892\">In plain terms: <strong data-start=\"1775\" data-end=\"1844\">producing more, even at a reduced price, can generate more profit<\/strong>, provided your processes are under control.<\/p>\n<h2 data-start=\"1899\" data-end=\"2003\">Filling the factory also creates the ideal conditions for optimising your industrial processes<\/h2>\n<p data-start=\"2005\" data-end=\"2211\">Once your production lines are well filled, an <strong data-start=\"2057\" data-end=\"2097\">additional performance lever<\/strong> becomes accessible:<strong data-start=\"2121\" data-end=\"2163\">industrial process optimisation<\/strong>. And this is where true profitability is decided.<\/p>\n<h3 data-start=\"2213\" data-end=\"2263\">A few examples of high-impact actions:<\/h3>\n<h4 data-start=\"2265\" data-end=\"2305\">Standardisation of operations<\/h4>\n<ul data-start=\"2306\" data-end=\"2598\">\n<li data-start=\"2306\" data-end=\"2410\">\n<p data-start=\"2308\" data-end=\"2410\">Implementation or updating of <a href=\"https:\/\/www.custup.com\/sop-standard-operating-procedure-definition-exemples\/\" target=\"_blank\" rel=\"noopener\"><strong data-start=\"2341\" data-end=\"2379\">SOPs (Standard Operating Procedures)<\/strong><\/a> in a format suited to your teams<\/p>\n<\/li>\n<li data-start=\"2411\" data-end=\"2490\">\n<p data-start=\"2413\" data-end=\"2490\">Creation of a customised <strong data-start=\"2427\" data-end=\"2477\">standard operating procedure document template<\/strong> customised<\/p>\n<\/li>\n<li data-start=\"2491\" data-end=\"2549\">\n<p data-start=\"2493\" data-end=\"2549\">Reduction of performance gaps between operators<\/p>\n<\/li>\n<li data-start=\"2550\" data-end=\"2598\">\n<p data-start=\"2552\" data-end=\"2598\">Better control of manufacturing processes<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"2600\" data-end=\"2658\">Continuous improvement and operational excellence<\/h4>\n<ul data-start=\"2659\" data-end=\"2971\">\n<li data-start=\"2659\" data-end=\"2733\">\n<p data-start=\"2661\" data-end=\"2733\">Implementation of <strong data-start=\"2678\" data-end=\"2697\">lean management<\/strong> or the <strong data-start=\"2707\" data-end=\"2733\">lean six sigma method<\/strong><\/p>\n<\/li>\n<li data-start=\"2734\" data-end=\"2788\">\n<p data-start=\"2736\" data-end=\"2788\">Gap analysis via <strong data-start=\"2763\" data-end=\"2788\">Ishikawa diagrams<\/strong><\/p>\n<\/li>\n<li data-start=\"2789\" data-end=\"2874\">\n<p data-start=\"2791\" data-end=\"2874\">Reduction of <strong data-start=\"2805\" data-end=\"2831\">bottlenecks<\/strong> in automated production lines<\/p>\n<\/li>\n<li data-start=\"2875\" data-end=\"2971\">\n<p data-start=\"2877\" data-end=\"2971\">Use of <strong data-start=\"2892\" data-end=\"2932\">industrial simulation software<\/strong> (automation, electronics, mechanics)<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"2973\" data-end=\"3022\">Mobilising collective intelligence<\/h4>\n<ul data-start=\"3023\" data-end=\"3326\">\n<li data-start=\"3023\" data-end=\"3087\">\n<p data-start=\"3025\" data-end=\"3087\">Implementation of <strong data-start=\"3044\" data-end=\"3071\">participative management<\/strong> and collaborative management<\/p>\n<\/li>\n<li data-start=\"3088\" data-end=\"3163\">\n<p data-start=\"3090\" data-end=\"3163\">Skills development for every <strong data-start=\"3130\" data-end=\"3163\">production line leader<\/strong><\/p>\n<\/li>\n<li data-start=\"3164\" data-end=\"3238\">\n<p data-start=\"3166\" data-end=\"3238\">Operator contribution to the optimisation of production sequences<\/p>\n<\/li>\n<li data-start=\"3239\" data-end=\"3326\">\n<p data-start=\"3241\" data-end=\"3326\">Sharing and updating of the <strong data-start=\"3267\" data-end=\"3293\">manufacturing file<\/strong> (examples, templates, definitions)<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"3328\" data-end=\"3376\">Technical support for industrialisation<\/h4>\n<ul data-start=\"3377\" data-end=\"3665\">\n<li data-start=\"3377\" data-end=\"3445\">\n<p data-start=\"3379\" data-end=\"3445\">Strengthening the role of the<strong data-start=\"3405\" data-end=\"3445\">industrialisation methods engineer<\/strong><\/p>\n<\/li>\n<li data-start=\"3446\" data-end=\"3511\">\n<p data-start=\"3448\" data-end=\"3511\">Process validation: <strong data-start=\"3473\" data-end=\"3511\">industrial validation file<\/strong><\/p>\n<\/li>\n<li data-start=\"3512\" data-end=\"3580\">\n<p data-start=\"3514\" data-end=\"3580\">Moving into production: <strong data-start=\"3538\" data-end=\"3580\">industrialisation phase of a product<\/strong><\/p>\n<\/li>\n<li data-start=\"3581\" data-end=\"3665\">\n<p data-start=\"3583\" data-end=\"3665\">Work on the <strong data-start=\"3598\" data-end=\"3611\">prototype<\/strong> and the <strong data-start=\"3618\" data-end=\"3665\">functional and technical specifications<\/strong><\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3672\" data-end=\"3733\">Hidden margins at every step of the industrial flow<\/h2>\n<p data-start=\"3735\" data-end=\"3841\">The<strong data-start=\"3737\" data-end=\"3779\">industrial process optimisation<\/strong> does not only concern production. It also extends:<\/p>\n<h3 data-start=\"3843\" data-end=\"3867\">To logistics:<\/h3>\n<ul data-start=\"3868\" data-end=\"4078\">\n<li data-start=\"3868\" data-end=\"3929\">\n<p data-start=\"3870\" data-end=\"3929\">Stock reduction through the implementation of <strong data-start=\"3915\" data-end=\"3929\">pull flows<\/strong><\/p>\n<\/li>\n<li data-start=\"3930\" data-end=\"3981\">\n<p data-start=\"3932\" data-end=\"3981\"><strong data-start=\"3932\" data-end=\"3981\">Optimisation of the procurement process<\/strong><\/p>\n<\/li>\n<li data-start=\"3982\" data-end=\"4021\">\n<p data-start=\"3984\" data-end=\"4021\">Automation of the <strong data-start=\"4002\" data-end=\"4021\">logistics flow<\/strong><\/p>\n<\/li>\n<li data-start=\"4022\" data-end=\"4078\">\n<p data-start=\"4024\" data-end=\"4078\">Better management of the <strong data-start=\"4048\" data-end=\"4078\">supply chain<\/strong><\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"4080\" data-end=\"4114\">To document management:<\/h3>\n<ul data-start=\"4115\" data-end=\"4312\">\n<li data-start=\"4115\" data-end=\"4166\">\n<p data-start=\"4117\" data-end=\"4166\">Structuring of the <a href=\"https:\/\/sxe-consulting.com\/en\/complete-guide-to-writing-technical-specifications\/\"><strong data-start=\"4134\" data-end=\"4166\">technical specification document<\/strong><\/a><\/p>\n<\/li>\n<li data-start=\"4167\" data-end=\"4243\">\n<p data-start=\"4169\" data-end=\"4243\">Tools to support the <strong data-start=\"4188\" data-end=\"4243\">design and improvement of industrial processes<\/strong><\/p>\n<\/li>\n<li data-start=\"4244\" data-end=\"4312\">\n<p data-start=\"4246\" data-end=\"4312\">Error reduction thanks to <strong data-start=\"4279\" data-end=\"4312\">document standardisation<\/strong><\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"4314\" data-end=\"4354\">To supplier selection:<\/h3>\n<ul data-start=\"4355\" data-end=\"4533\">\n<li data-start=\"4355\" data-end=\"4415\">\n<p data-start=\"4357\" data-end=\"4415\">Implementation of <strong data-start=\"4374\" data-end=\"4415\">supplier evaluation grids<\/strong><\/p>\n<\/li>\n<li data-start=\"4416\" data-end=\"4474\">\n<p data-start=\"4418\" data-end=\"4474\">Regular account audits and <strong data-start=\"4448\" data-end=\"4474\">selection procedure<\/strong><\/p>\n<\/li>\n<li data-start=\"4475\" data-end=\"4533\">\n<p data-start=\"4477\" data-end=\"4533\">Cost reduction thanks to reliable partners<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"4540\" data-end=\"4595\">Concrete example: the case of a glass industry manufacturer<\/h2>\n<p data-start=\"4597\" data-end=\"4986\">Let us take an example inspired by a real case.\u00a0<br data-start=\"4675\" data-end=\"4678\" \/>A company in the sector of <strong data-start=\"4708\" data-end=\"4760\">refractory materials for the glass industry<\/strong> sells its high value-added products (refractory bricks, mortars, specific cements). The order book is stagnating. Management decides on a selective price reduction to <strong data-start=\"4944\" data-end=\"4985\">fill the factory to 90% of its capacity<\/strong>.<\/p>\n<p data-start=\"4988\" data-end=\"5015\">Simultaneously, we:<\/p>\n<ul data-start=\"5016\" data-end=\"5287\">\n<li data-start=\"5016\" data-end=\"5068\">\n<p data-start=\"5018\" data-end=\"5068\">Implemented a <strong data-start=\"5034\" data-end=\"5068\">manufacturing process audit<\/strong><\/p>\n<\/li>\n<li data-start=\"5069\" data-end=\"5152\">\n<p data-start=\"5071\" data-end=\"5152\">Identified several <strong data-start=\"5091\" data-end=\"5134\">over-engineered manufacturing processes<\/strong> (over engineered)<\/p>\n<\/li>\n<li data-start=\"5153\" data-end=\"5197\">\n<p data-start=\"5155\" data-end=\"5197\">Reworked the <strong data-start=\"5171\" data-end=\"5197\">job descriptions and SOPs<\/strong><\/p>\n<\/li>\n<li data-start=\"5198\" data-end=\"5287\">\n<p data-start=\"5200\" data-end=\"5287\">Implemented a <strong data-start=\"5214\" data-end=\"5250\">mechanical simulation software package<\/strong> to optimise thermal cycles<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"5289\" data-end=\"5313\">Result after 12 months:<\/p>\n<ul data-start=\"5314\" data-end=\"5477\">\n<li data-start=\"5314\" data-end=\"5366\">\n<p data-start=\"5316\" data-end=\"5366\"><strong data-start=\"5316\" data-end=\"5366\">Unit manufacturing cost down 11%<\/strong><\/p>\n<\/li>\n<li data-start=\"5367\" data-end=\"5401\">\n<p data-start=\"5369\" data-end=\"5401\"><strong data-start=\"5369\" data-end=\"5401\">Scrap reduced by 27%<\/strong><\/p>\n<\/li>\n<li data-start=\"5402\" data-end=\"5477\">\n<p data-start=\"5404\" data-end=\"5477\"><strong data-start=\"5404\" data-end=\"5443\">Overall gross margin gain of +18%<\/strong> despite the initial price reduction<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"5484\" data-end=\"5559\">The key: combining industrial strategy and operational excellence<\/h2>\n<p data-start=\"5561\" data-end=\"5674\">The success of such an approach rests on <strong data-start=\"5605\" data-end=\"5630\">a long-term vision<\/strong> and coordination of all the players:<\/p>\n<ul data-start=\"5675\" data-end=\"5879\">\n<li data-start=\"5675\" data-end=\"5710\">\n<p data-start=\"5677\" data-end=\"5710\"><strong data-start=\"5677\" data-end=\"5708\">Production line manager<\/strong><\/p>\n<\/li>\n<li data-start=\"5711\" data-end=\"5748\">\n<p data-start=\"5713\" data-end=\"5748\"><strong data-start=\"5713\" data-end=\"5746\">Industrialisation manager<\/strong><\/p>\n<\/li>\n<li data-start=\"5749\" data-end=\"5788\">\n<p data-start=\"5751\" data-end=\"5788\"><strong data-start=\"5751\" data-end=\"5786\">Product development officer<\/strong><\/p>\n<\/li>\n<li data-start=\"5789\" data-end=\"5834\">\n<p data-start=\"5791\" data-end=\"5834\"><strong data-start=\"5791\" data-end=\"5832\">Digital transformation consultant<\/strong><\/p>\n<\/li>\n<li data-start=\"5835\" data-end=\"5879\">\n<p data-start=\"5837\" data-end=\"5879\"><strong data-start=\"5837\" data-end=\"5877\">Industrial performance manager<\/strong><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"5881\" data-end=\"6122\">An <strong data-start=\"5885\" data-end=\"5917\">sound industrial strategy<\/strong> is not solely about reducing costs. It is also about better <strong data-start=\"5991\" data-end=\"6030\">valuing internal know-how<\/strong>, <strong data-start=\"6032\" data-end=\"6059\">making processes more reliable<\/strong>, and making the organisation more agile in the face of market uncertainties.<\/p>\n<h2 data-start=\"6129\" data-end=\"6169\">Conclusion: aim for the double lever<\/h2>\n<p data-start=\"6171\" data-end=\"6396\">By lowering your prices strategically to <strong data-start=\"6220\" data-end=\"6256\">fill your production lines<\/strong>, you do not sacrifice your profitability. You <strong data-start=\"6304\" data-end=\"6371\">create the ideal conditions to trigger a virtuous circle<\/strong> of continuous improvement. <span style=\"color: #ffffff;\">optimise your industrial processes<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Peut-on vraiment gagner plus en vendant moins cher ?\u00c0 premi\u00e8re vue, cela semble contre-intuitif. Pourtant, dans l\u2019industrie manufacturi\u00e8re, baisser ses prix peut \u00eatre une strat\u00e9gie redoutablement efficace pour am\u00e9liorer ses r\u00e9sultats financiers. \u00c0 condition de ma\u00eetriser ses co\u00fbts\u2026 et surtout d\u2019optimiser ses processus industriels. Le raisonnement \u00e9conomique : amortir les frais fixes et g\u00e9n\u00e9rer du [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[42,82,83,84],"tags":[],"class_list":["post-12278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-lean-management","category-supply-chain","category-transformation-digitale"],"jetpack_featured_media_url":"https:\/\/sxe-consulting.com\/wp-content\/uploads\/2025\/08\/les-strategies-de-differenciation.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/posts\/12278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/comments?post=12278"}],"version-history":[{"count":0,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/posts\/12278\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/media\/12279"}],"wp:attachment":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/media?parent=12278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/categories?post=12278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/tags?post=12278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}