The COVID-19 pandemic has taught us many lessons, not the least of which is the value of a reliable supply chain. If you can become a reliable supplier, it’s time to price for that ability. Once your customer internalizes your value, the conversation about your prices has completely changed. The conversation is no longer about you discounting to close the deal, but instead, about your value as a reliable supplier, as the author explains.
In response to the ongoing pandemic, inflation is putting pressure on companies operating across many industries and countries. While customers can expect fluctuations in prices, suppliers can benefit from a strategic approach for implementing these price changes. In this article, the author presents five tips for adapting your prices to an inflation environment.
BCG Executive Perspectives offer insights on global topics that matter most to leaders in the public and private sectors. This edition delves into the different ways the pandemic is affecting consumption habits and what this means for companies trying to keep up. Although not pricing specific, this article presents key insights for pricers working to develop effective post-COVID pricing strategies.
After months and months of COVID induced lockdowns and restrictions, many parts of the UK were recently able to celebrate “Freedom Day,” as the government removed almost all remaining restrictions on its citizens and enabled businesses to dial-down some of the social distancing measures in place for the last 18 months. In this article, one UK pricing expert examines what this means for restaurants, cinemas and other experience economy-based businesses looking to attract customer and regain much needed revenue.
A study of seven leading industrial manufacturers based in Europe shows a clear correlation between overall organizational profitability and the share of total business delivered as aftermarket services. Moreover, a healthy aftermarket service business offers commercial stability in periods of high market volatility. This has played out in the current COVID-19 pandemic environment with companies who maintain the highest share of aftermarket service business able to retain high profitability. Companies need to continuously invest in the aftermarket service business to ensure a more stable and recurring stream of profit., as the author explains, as he provides pricing insights that can be applied across multiple industries.
With wide-scale vaccine rollouts well underway, our entry into a post-pandemic world is already a reality for some and an inevitability for others. Those within the experience economy who establish strong pricing strategies by capitalizing on their pricing power, gaining consumer confidence, considering consumer behavior, and identifying value drivers will maximize profits, overcome pandemic-related losses, and set the groundwork for long-term success. One thing is for sure – there’s no time to lose, as the author explains.
In today’s post-pandemic, rising inflation economy, most companies realize a need for a price change. If you are considering a price increase today, which you likely are, here are the seven key factors for enabling a price increase to succeed.
As the economy begins its post-COVID recovery, coupling disrupted supply chains with increasing demand and rising materials costs, managing pricing dynamically and doing so ethically (and with the best interest of supply chains) is important. We cannot forget that short profits might damage long-term reputation and credibility, as the author explains.
The one trait that will separate the winners from the rest in this pandemic is a rare combination of capabilities that we call commercial agility: the ability to make resilient pricing, design, sales, and cost management decisions with unprecedented speed and flexibility – over and over again – until some form of equilibrium returns to your market.
The shift of B2B buyers to digital channels is not a new phenomenon, but COVID-19 has accelerated the shift tremendously. For businesses looking to survive, COVID-19 has been a catalyst for accelerated change – a catalyst for investment in real, usable digital channels, as the author explains.