Cost Spikes, Inflation, and Supply Shortages remain as the top economic challenge in 2022
While we may have all hoped that the surge in the cost of raw materials and pandemic-related disruptions would dissipate, the truth is that we’re now in a significant period of inflation with most companies needing to increase prices in the high single digits or low double digits just to stay neutral. Instead of simply looking at typical “across the board” price increases for 2022, consider these three strategies to reduce customer resistance to a large price increase: Pricing’s Power of 1%, cost-to-serve, and value-based pricing.