Some companies (and their customers) are tired of playing the “inflation price update” game: trying to determine how much input costs have actually increased and then trying to determine how much of that cost can be passed on to customers. As a result, some companies have decided to opt out of as much of this game as possible by updating their pricing models to include a commodity index, as the author explains.
The Professional Pricing Society’s December 2022 survey of pricing professionals received 743 responses from a cross-section of industries across the globe. The mission of PPS is to nurture a growing community of pricing professionals committed to disseminating pricing expertise throughout the business world. As part of this mission, 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.
In an environment of entrenched inflation, those companies that can execute fast on price adjustments/increases will become the fittest to overcome the challenge. Reacting means already losing margins, and potentially even business and competitiveness. Managing in anticipation and swift execution are key to coping with an inflationary business environment. That said, price adjustments need to be fair, evidence-based, and transparent, and they need to be tuned to that level which allows for good competitiveness. This demands a high level of business agility, as the author explains.
There has long been an assumption that Software as a Service (SaaS) companies will become profitable as they scale, so that as long as you are on track for rapid growth, the profits will come. This belief is now being called into question. SaaS companies have real costs and how those costs change with scale has become an open question for many companies. To be successful in today’s changing economic climate, SaaS companies need to understand the relationship between value, price, and costs and how these change with scale, as the author explains.
This article is an excerpt from the author‘s successful pricing book - "Digital Pricing: A Guide to Strategic Pricing for the Digital Economy“ – the second edition of which has recently been released in English and is now available for purchase. The excerpt focuses on how digitization influences all aspects of price management, enabling new business models, additional revenue streams, greater integration of customers into business processes, innovative price models, and more.
In today’s rapidly changing economy, the most successful firms are those that have as their number one priority a total comprehension of the value perceived by their customers combined with innovative approaches to monetization, as the author explains.
The topic of ethical pricing is one that challenges companies to balance their economic goals with the need to maintain ethical practices. The struggle to remain profitable while upholding ethical standards is a complex and multifaceted issue that requires a comprehensive solution that takes into account the needs of all stakeholders. By embracing innovative solutions that balance profit and principle, companies can ensure that they are able to remain competitive and profitable while maintaining the highest ethical standards, as the author explains.
In this article, the author presents a roadmap and critical steps for implementing effective and impactful price education training in your organization.
Looking for a practical, concrete guide for agile actions relevant to your business? “Beating Inflation,” the new book by Hermann Simon and Adam Echter, gives you the best of both worlds: real-life experience from pricing professionals and state-of-the-art knowledge and research that successful companies are implementing today. In this article, author Adam Echter presents several of the key takeaways from the book that pricers can begin implementing to fight the current unprecedented levels of inflation.
The U.S. and global economies are going to slow down, and it is not the end of the waves of disruption we have seen over the past 5 years. Companies must develop costing and pricing skills to manage constant business volatility, as the author explains.