The U.S. economy continues to throw off mixed signals. But one thing is becoming clear: executives should prepare for an extended period of higher interest rates. This article was originally published on September 16th, 2022. This article represents views from McKinsey’s Risk and Resilience Practice, Strategy and Corporate Finance Practice, and McKinsey Transformation.
The Professional Pricing Society’s December 2021 survey of Pricing professionals received 640 responses from a cross-section of industries across the globe. PPS conducts surveys with the hope that this information provides a good synopsis of where Pricing stands as a career option while also providing a good demonstration of Pricing’s status in the business world.
Even in today’s challenging economy, plagued with high inflation, increasing costs, and supply chain challenges, pricing issues can be easily avoided if you know what to look out for. In this article, the author presents eight common pricing mistakes that companies often make and should work to prevent, especially in light of current challenges.
Simon-Kucher & Partners recently conducted a cross-national survey to identify trends in leisure travel in the post-pandemic, high-inflation economy. Revenge travel is reaching its peak, yet the cost-of-living crisis is starting to impact leisure travelers’ behavior and spending. Perhaps more than any other sector, travel and tourism has been transformed by the pandemic. Yet it’s clear that the pandemic isn’t the only factor influencing the way we travel in 2022 and beyond. In this article, the authors explore the results of this study and the implications for pricers in travel-related industries. Although industry specific, this article provides useful consumer insights for all pricers dealing with current economic challenges.
In this article, the author examines the inflationary issues at hand and how pricing can assist in calming the inflation storm and make sure pricing teams are ready for any other disasters they may face. Because let’s face it, this won’t be the last time we face dramatic shocks to your ecosystem – 2008 crisis, anyone?
Using the standard volume hurdle equation allows a pricing professional to calculate the volume hurdle required for both price increases and price decreases. However, this volume hurdle analysis only considers pure price changes, where nothing changes but the price. It does not take cost changes into account. In this article, the author explains how to expand this equation to account for changing costs, which is a critical consideration for pricers in the current economic environment.
This article on “the inflation imperative” is an excerpt from the second edition of Pricing with Confidence, due to be published in October 2022. Pricing with Confidence: Ten Rules for Increasing Profits and Staying Ahead of Inflation was written by Reed K. Holden and Jeet Mukherjee of Holden Advisors, with the intent to provide readers with the tools and resources required to build an organization that executes well in the face of volatility.
Inflation is back, cost volatility and supply chain disruptions are continuing, and the availability and supply of raw materials are inconsistent. While these trends show no signs of abating, economic concerns are growing, and companies are wondering how they should adjust their pricing to offset constant inflation without jeopardizing future revenues. Industrial players are paying more attention to their pricing strategies to cope with inflation and ensure sustainable impact, as the authors explain.
Charging different prices is often fairer than charging everyone the same price. While there are no standard answers to the question of what makes a price fair, business leaders can embrace market transparency, understand what drives the perceptions of fairness in their market, and ensure that they offer prices that customers will perceive as fair. With the right understanding and the right approach, companies can vary prices in ways that mutually benefit themselves and customers, and perhaps society as well, as the author explains.
The purpose of this paper is to provide more information about what customer value means, how it is materialized in pricing and selling processes, and how buyers perceive value and manage it versus price. Customer value is now the number one imperative for all organizations as they build the plans for their next five to ten years, as the author explains.