Getting ahead of rising prices in an inflationary environment is one thing; staying ahead is another. Data, technology, and savvy management can turn cost pressures into pricing opportunities, as the authors explain. Although focused on private equity, this article provides insights that can be applied by pricers dealing with the challenges of widespread inflation.
Just as the pandemic is (HOPEFULLY) winding down, a new crop of business challenges has arrived. These challenges include the war in Ukraine, inflation, and the possibility of wider global conflict. Now is not the time to ignore your pricing. If anything, challenging business conditions are one of the most important times to review your pricing performance and pricing strategy, as the author explains.
With rising prices, raw material costs, and energy expenses, it’s safe to say goods are more expensive than they have been in years. And there seems to be no relief in sight. In this article, the authors explore best practices for pricers in both B2B and B2C industries to grow profits despite inflation.
Supply chain disruptions, rising energy costs, and increased consumer demand are driving inflation rates up to levels not seen in decades. However, even after months of increases, many companies are struggling to respond effectively to the situation. To learn more about their perspective, Simon-Kucher & Partners undertook a global Inflation Pricing Study and developed this 9-step process for companies trying to navigate pricing amidst these economic challenges.
Evidence of an inflationary acceleration is accumulating. Price actions by industry leaders are both responding and contributing to it. Price increases are a frequent response to inflation. They can range from purely defensive “layman’s pass-thru”, to opportunities for profit growth. This creates profit opportunities for competitors. Whether followers or contrarians, middle market firms must decide which path is more advisable given their competitive strengths, margins profile, and their pricing “culture.” Timing and preparedness matter, as the author explains.