Game: Cost Game
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Restaurant’s Has Increased Prices By Nearly 100% Over 5 Years
Casual dining restaurant chains in the US are facing some moments of truth in 2025. After five years of raising their prices at a faster pace than inflation, they may need to get more creative at a time when the combination of rising costs and sharply declining consumer confidence threaten their margins. For many, this…
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How to Cut Prices Without Cutting Prices
In Part II of Game Changer my co-author Arnab Sinha and I devoted a chapter to the Cost Game and its core pricing model, the much-maligned cost-plus approach. Many companies succeed with this model by making cost management their superpower, but face challenges when their input costs decline significantly. In this week’s guest contribution, our…
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Winning the Cost Game
If pricing professionals brainstormed for a slogan to put on mugs and t-shirts, we’re confident that “Never Use Cost-Plus Pricing!” would make their short list. The critics call out the simplicity of the approach. How can the fusion of only two numbers – a cost and a target margin – possibly serve a company well…
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Video on the Cost Game
G’s Ricard Vila shares his insights on the Cost Game in the latest installment of the Game Changer Expert Interview Series. In this video, Ricard explains why implementing rigorous cost accounting, optimizing supply chains, and effectively managing quality risks are essential for companies playing this game. To learn more about strategic pricing and the newest…
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What is a Fair Price for Lithium
What is a fair price for lithium? Perhaps a better question is: what is the best way to find a fair price for lithium? Albemarle, the world’s leading producer, has begun to switch its pricing mechanism from fixed-price contracts to auctions. The goal is to achieve “fair product valuation — for both buyers and sellers…