Expert Insights: What to Consider When Dealing With Massive Inflation Rates

The current combination of shipping challenges and surging economies has caused an inflationary shock. The result? Significant price increases. Many companies have been caught off guard by this development and – in an effort to maintain their margins and thus enable re-investments in their business – they automatically raise prices. While this is an understandable reaction, our advice would be to deploy a very nuanced, strategic increase rather than a generic one, designed to simply pass-through higher costs. We defined 3 key questions regarding customer segmentation, willingness to pay, and communication that should be the foundation for this strategic approach.

With prices for raw materials, energy, and shipping still increasing and amid ongoing uncertainty about when they will stabilize, there is no better time for companies to consider strategic price increases. Their goal is not only to minimize…