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Imagine your day-to-day pricing resembles what you find in the pages of your Economics 101 textbook. You determine uniform prices for your products because you have large numbers of relatively homogeneous customers who have several direct and indirect alternatives to choose from. Then a shock shakes up your market. Five years ago, the spread of…

The conversation around pricing is changing among the economy’s stakeholders, including governments, companies, and consumers. Powerful technologies and trends are reshaping pricing, while C-level executives are becoming acutely aware of the financial and commercial impact that their pricing strategies have. Five trends will determine where this conversation heads next. The underlying trend is the growing combined power…

Imagine that you manage an industrial company that now faces a 15% import tariff on one of its essential feedstocks. The tariff does not affect your main competitors, though, because they use different suppliers. With an EBITDA of 8%, your profits could erode quickly if you don’t change prices urgently and decisively.   How do you refine…

The seemingly inevitable launch of new and higher tariffs will throw almost every company’s pricing strategy off its axis. The resulting higher costs will alter the competitive balance in many markets, reshape supply chains, upset established sourcing and service models, and lead to other unanticipated and harder-to-observe effects throughout the broader ecosystems where companies operate. To make…

Inflation is not the only reason why consumers increase their spending. As it turns out, many consumers also deliberately choose to spend more. Why? Because they feel good about their income and savings, because they have good job prospects, because they enjoy spending on things they couldn’t previously afford, or because they just want to…