Don’t let inflation eat your margins

Grasp the opportunity to shift to value based pricing instead and come out a winner.

In today’s market environment with high volatility and extraordinary inflation rates the pricing challenges and the velocity needed to keep up with the market development is higher than ever before.

Many organizations have a hard time working proactively in this environment. Some hope that they can ride out the storm. But they will soon realize that they are forced to act when inflation is eating their profitability.

Last minute price increases – the worst possible solution

This often results in last minute price decisions with flat price increases across broad product offerings. This ultimately leads to already overpriced items becoming even harder to sell, while money is left on the table on underpriced assortments.


Use the opportunity your competitors are missing

The current high inflation market creates an opportunity to improve and optimize your pricing strategy. Yes, you heard right.

Right now, bigger moves to reposition your pricing are actually possible in a shorter period of time than usual. Corrections that would have taken several years to phase in gradually, can now be implemented in a matter of months.

Capture early signals about your future market

At the same time, it’s important to connect your commercial positioning to relevant lead indicators that allow for early signals to be captured. These signals can be used to predict where the target commercial level shall be 3, 6, and 12 months into the future.

This way, you are provided with a runway to take action and implement pricing decisions, before any impact has yet been seen on COGS (cost of goods sold).

Shift to value based pricing

When done right this creates an opportunity to shift to a value based and market driven methodology with higher velocity. And at the same time securing an operational, forward oriented approach to maintain the price levels based on leveraging relevant lead indicators.

Would you like to know more about how you can leverage a predictive approach to maintain your pricing in a volatile market? Right now we offer a limited amount of 30 minute, free advice sessions on pricing excellence. Book your slot before anyone else does.