inflation pricing

Article archives from the Pricing Pricing Society

Pricing in Times of Inflation and Rising Factor Costs

In several countries, you can observe inflation rates that are higher than the ones in the 1950s: an all-time high within the last 70 years! This requires quick adjustments to leadership and management practices and to the way pricing and revenue models are managed. the authors propose 6 core topics to shape your strategy to succeed in these turbulent times.

Inflation and Recession: The Commercial Impact

Did you find the last two year’s negotiations tough? Then brace yourself for the next round. So far, the direction has been clear: prices needed to increase to absorb the costs of disruptions in global supply chains. Guarantee of supply was the most important value-driver for many customers, which meant that sellers could successfully pass on their cost increases. However, as a second wave of cost increases has hit the markets in the form of rising energy costs, and as consumers are demanding higher wages as a result, a wage-price spiral is beginning to take shape. This means high inflation rates will be with us for some time and companies should prepare their commercial strategy accordingly.

By |2022-11-25T14:30:08+00:00November 30, 2022|Inflation Pricing, Pricing Articles, Recession Pricing|0 Comments

What Happens to Pricing When Demand Falls?

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.

By |2022-11-07T23:00:14+00:00October 31, 2022|Inflation Pricing, Pricing Articles, Recession Pricing|0 Comments

Something’s coming: How US companies can build resilience, survive a downturn, and thrive in the next cycle

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.

By |2022-11-07T22:58:58+00:00October 31, 2022|Inflation Pricing, Pricing Articles, Recession Pricing|0 Comments

8 Strategies to Manage Price Fluctuations and Supply Chain Problems

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?

By |2022-11-07T23:20:04+00:00September 30, 2022|Inflation Pricing, Pricing Articles, Supply Chain Pricing|0 Comments

Pricing during inflation: Active management can preserve sustainable value

Inflation is back, cost volatility and supply chain disruptions are continuing, and the availability and supply of raw materials are inconsistent. While these trends show no signs of abating, economic concerns are growing, and companies are wondering how they should adjust their pricing to offset constant inflation without jeopardizing future revenues. Industrial players are paying more attention to their pricing strategies to cope with inflation and ensure sustainable impact, as the authors explain.

Questions Boards Should Ask CEOs About Pricing

Inflation is headed up over 8% per year and could go over 10% in the United States. Interest rates are rising in response, and the economy could tumble into a recession (two consecutive quarters of contraction). Boards need to help their companies develop the resilience to survive these changes and prepare them to adapt to a changing environment. One step towards doing this is to ask some basic questions about pricing, as the author explains.

By |2022-11-07T23:28:23+00:00August 31, 2022|Inflation Pricing, Price Management, Pricing Articles|0 Comments

Fighting “Greedflation” with Value-Based Pricing

Virtually every type of business is feeling the effect of current inflation levels and are being forced to raise prices in order to continue operating profitably. Although most customers understand the current economic pressures and see that prices are increasing everywhere, where things can get messy is in the “how” and “how much” behind these increases. In this article, the author provides best practices for avoiding the appearance of “greedflation.”

By |2022-11-07T23:35:07+00:00July 31, 2022|Inflation Pricing, Pricing Articles, Value Pricing|0 Comments

Managing Inflation through Smart Price Increases: Why MedTech Companies Need to Act Now

In this article, the author presents a nine-step approach that helps MedTech companies to successfully increase their prices while avoiding the most common pitfalls. It is structured in three phases – level configuration, implementation preparation, and roll-out – and addresses the key questions companies have regarding price increases. Although specific to the medical technology industry, this article provides insights for all pricers who are seeking agile solutions to battling current inflation challenges.

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