In this article, the authors explore Artificial Intelligence, Machine Learning and Algorithms, show real examples of applications in the world of Pricing and Revenue Management, and examine the benefits, challenges, and points of caution to consider when using these “new” technologies.
In the currently unpredictable, post-COVID, inflation-plagued economy, companies are being tested on their pricing strategies and their pricing decision-making “spine.” In this article, the author analyzes recent pricing decisions by six organizations in diverse industries and outlines the potential strengths and weaknesses of each pricing approach.
Understanding Costco’s messaging code embedded in its price point endings can be dramatically useful for consumers looking for bargains and further inflation-fighting opportunities. For pricers and marketers, it invites admiration and respect for a brand that is immensely successful because it thinks the details through, as the author explains.
Over the last three months, we’ve begun to see revenues rise and demand flatten as the pricing decisions made a year and a half ago work their way down to customers. How can companies manage rising inflation and a shortfall in goods without experiencing degradation in margins or revenue (especially when products can’t be produced due to commodity shortages)? We recently met with pricing executives from around the globe to discuss pricing strategies in light of current inflation and the looming threat of recession. Here are six key takeaways from those discussions.
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.