We are in unchartered waters of a global pandemic and macroeconomic uncertainty. In this environment, how should businesses adjust their strategies to best address the unpredictable market? Are price cuts – or price increases – warranted to protect growth and margins?
While the current global crisis is making it necessary for companies to act quickly, careful consideration must be made regarding pricing decisions and strategies. Rash actions can have detrimental effects that can become long-term burdens, and poor decisions in a time of uncertainty can result in years of rebuilding in order to restore profitability. In this article, the authors present immediate actions that you can take to protect your company’s cash flow while also ensuring its long-term success.
In a very chaotic world, such as the one in which we currently find ourselves, cost-plus pricing is straight forward. Costing, however, can be rather complex, which makes managing dynamic cost-plus pricing very tricky. If your main pricing orientation is cost-based or cost-plus, you should consider the points presented here in order to survive current challenges.
The coronavirus crisis is affecting companies and the economy with full force. The consequences are multifaceted, from the increasing vulnerability of supply chains and the rising number of infections on production lines to added stress on sales teams, which must react to rapidly changing market events. Adding agility to their pricing processes and price models can help companies reduce the impact of the crisis, as the authors explain.
While the main emphasis on COVID-19 is and should be on containing and mitigating the disease itself, we observe many companies struggling to get their pricing right and adapt to the rapidly evolving situation. We believe there is significant opportunity to emerge even stronger from the crisis and to strengthen your business by taking the medium-term perspective as economies will begin to recover.
The rapid spread of the Coronavirus is causing uncertainty for consumers, suppliers and markets. Consumers decry increased prices in the face of a crisis, but suppliers are working to meet increased demand and prevent scarcity at a more rapid rate. Emergency situations call for emergency pricing responses, but what are the best responses for all concerned? In this article, the author explores the pricing complexity and ethical considerations pricers face in these types of situations.