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Prices update and changes to our pricing policy

Prices update and changes to our pricing policy

Dear all,

As every year at this time, we will proceed next Tuesday with the update of our sales prices.

This revision will incorporate:

  • updated supplier prices following the annual market consultation process (RFQ),

  • as well as changes in importation costs, particularly in the current context linked to the Middle East crisis.

 

Beyond this usual annual update, 2026 marks an important evolution in our pricing policy. 

Our current model — in place since 2010 — has shown certain limitations, particularly in terms of ease of maintenance and price stability. Until now, our pricing has been based on an Activity-Based Costing (ABC) approach, resulting in a specific cost recovery rate for each individual item.

We are now moving to a simpler and more robust methodology, aligned with the approach used by MSF Log (without implying identical sales prices or recovery rates, as cost structures differ and purchase prices may also vary):

  • a single recovery rate will apply to the majority of items,

  • with a reduced rate for high-value items.

In addition, the frequency of price updates is also evolving. Going forward:

  • prices will be reviewed on a monthly basis, on the first day of each month,

  • replacing the previous approach of ad hoc adjustments whenever a 5% variance was observed. 

 

Within this framework, sales prices will now be set centrally, with the exception of loss-making situations: in such cases, necessary adjustments will be made without waiting for the next monthly update.

This transition will result in potentially significant differences between prices before 19/05 and those applied thereafter. However, this new approach is designed to ensure much greater stability and improved price visibility over time.

In line with the Board’s decision, the overall average recovery rate will not be increased. Price increases will therefore be offset by decreases across other items in our catalogue.

We will closely monitor the impact of this implementation and remain ready to adjust the policy if needed, to ensure both cost recovery and improved predictability for you.

Thank you for your understanding and continued collaboration.

Please do not hesitate to contact us should you have any questions — we will be happy to assist.

 

Matthieu Pasquier

Head of Finance MSF Supply