Authors: Alex Abdelnour, Arnau Bages-Amat, Stephen Moss, and Manish Prabhu

While input cost increases and volatility are challenging, they present an opportunity to improve pricing and institutionalize best practices—but margins will likely suffer if these are not executed in a strategic way, as the authors explain. Alex Abdelnour (Alex_Abdelnour@mckinsey.com) is a Partner (Atlanta), Arnau Bages-Amat (Arnau_Bages_Amat@mckinsey.com) is a Partner (Tokyo), Stephen Moss (Stephen_Moss@mckinsey.com) is a Partner (Denver), and Manish Prabhu (Manish_Prabhu@mckinsey.com) is an Associate Partner (Chicago) with McKinsey & Company. The authors wish to thank Rohan Maini and Dean Pugachev for their contributions to this article.

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