More Pricing Power through Value Power
04.09.2025
Suppliers of supposedly “interchangeable” products such as C-parts (screws, nuts, office supplies, etc.) are under particular price and cost pressure. To remain competitive, they have two options: they are either better or cheaper than their competitors. Companies who focus on being ‘cheaper’ quickly find themselves in a price war they cannot win. Suppliers who focus on being ‘better’ face a variety of opportunities to create added value beyond the product. Ultimately, the customer always decides what added value is.
In the B2B environment, suppliers provide added value, e.g., by reducing their customers´ Total Cost of Ownership. If they do this better than their competitors, they have Value Power. And Value Power is the basis of Pricing Power: Customers recognize the added value, are willing to pay higher prices, and react less strongly to price increases.
How can you find opportunities to create added value (differentiation), especially when you offer ´interchangeable´ products? Answer: By changing the perspective: The focus is then no longer on your product, but on the customer's ecosystem. The key question is: How can we help our customers measurably increase their business success? The following additional questions will help you find out:
What role does our product play in the customer's value creation process?
What activities and challenges are associated with the use of the product?
How can we support our customers with these activities and challenges? Which activities can we manage for the customer?
Case Study: Bossard, Switzerland
Based on the above questions, the Swiss company Bossard (https://www.bossard.com/) has evolved from a supplier of C-parts for fastening and mounting to a strategic service and solution partner who supports its customers in sustainably and measurably increasing their competitiveness under the motto “Proven Productivity.” To achieve this, Bossard has developed the following services:
Assembly Technology Expert: When developing a new product, Assembly Technology Expert Services provide the most intelligent solutions for connection technology challenges. This significantly reduces production time and costs.
Smart Factory Logistics: With the help of the Internet of Things, Bossard makes its customers' B and C parts management leaner and more transparent and ensures flawless supply chain performance. A value calculator is available on the company's website to calculate the savings.
Smart Factory Assembly: With this service, Bossard accelerates the digitalization of its customers' production. With the help of an Industry 4.0 platform, the performance of networked devices, real-time data collection, traceability, flexibility, and customized adaptation are ensured. To meet differences in needs and customer willingness to pay, Bossard offers the service in four levels: Free, Basic, Pro, and Enterprise.
By offering high-impact services in addition to its C parts, Bossard has considerably strengthened its Value Power and thereby raised customers´ willingness to pay. This is reflected in the company's EBIT margin, which was above industry average at 10.7% in the first half of 2025 (Source: Bossard Ad Hoc Announcement, July 2025). C-parts are the basis of the business and the revenue generator, services are the profit drivers!