Chemical Leasing Toolkit

You are here

Concept

Chemical Leasing is a service-oriented business model that shifts the focus from increasing the sales volume of chemicals toward a value-added approach. In essence, the model decouples payment from volume.  Instead of basing sales price on the volume of chemicals provided, the producer mainly sells the functions the chemicals perform. The functional units (e.g. the number of parts cleaned or the size of the area coated) become the basis for payment. The customer pays for the results, and the volume of chemical used becomes a cost factor for the supplier rather than a revenue factor.  The supplier thus has a direct incentive to harness its expertise to reduce the amount of chemical consumed and increase the customer’s process efficiency.

Chemical Leasing Business Model - Bundled Motivation and Joint Interests