value pricing

Article archives from the Pricing Pricing Society

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.

Value Pricing in the Gross Profit Margin Trap

GP% (Gross Profit Margin) is used broadly for pricing decisions across many organizations, namely those which transition from a legacy in cost-based pricing towards a more value-based pricing approach. However, GP% is not an appropriate measure for price setting. Employing GP% in value pricing is just one of many examples where an overly simplistic compromise is often made, sometimes putting a business into bedlam, as the author explains.

By |2022-03-24T19:29:17+00:00July 31, 2021|Pricing Articles, Value Pricing|0 Comments
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