Rachit Sahijani’s Post

📉 For a third straight month, there have been signs that #inflation is cooling in the US. 💲As #inflation cools, #B2B companies must ensure #pricing reflects real-time market conditions while rationalizing price decreases with dropping costs. ❓But the biggest challenge is determining just how far to go. 𝗥𝗲𝗮𝗱 𝘁𝗵𝗶𝘀 𝗯𝗹𝗼𝗴 𝗽𝗼𝘀𝘁 𝘁𝗼 𝗱𝗶𝘀𝗰𝗼𝘃𝗲𝗿 𝘁𝗵𝗿𝗲𝗲 𝘁𝗶𝗽𝘀 𝗳𝗼𝗿 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝘁𝗹𝘆 𝗺𝗮𝗸𝗶𝗻𝗴 𝗽𝗿𝗶𝗰𝗲 𝗮𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗮𝘀 𝗰𝗼𝘀𝘁𝘀 𝗳𝗮𝗹𝗹 👉 https://lnkd.in/gAVVnPFr  #pricingstrategy #pricingstrategies #pricingsoftware #priceadjustments #pricemanagement #priceoptimization #economictrends #revenuegrowth #revenuemanagement #profitability #profitablegrowth #inflationinsights #inflationtrends

Prices are still high, despite some reports that inflation has ceased. Some companies have thought about raising their prices to compensate, but they worry they may lose customers. 📊? Luckily, you have other options - here's how you can combat the continued high prices we face without passing the costs onto your customers.  #inflation #prices #business

Five ways to ADAPT pricing to inflation Price adjustments due to inflation call for nuanced approaches that, when done well, can strengthen customer relationships and overall margins. #ADAPTPricingToInflation https://lnkd.in/gAHfZQNF

As inflation rises, many businesses feel the pressure to increase their prices. But before you take that leap, consider this. Raising prices without examining your business model and product mix could be a recipe for disaster. Instead, take a step back and evaluate your options. Are there ways to optimize your operations, reduce costs, or offer more value to your customers? Visit our blog for more information: #inflation #businesspricingstrategy  

🔺 Pricing During Inflation 🔺 ♂ Inflation is a common challenge that affects businesses today, leading to increased production costs. This often forces companies to raise their selling prices to maintain profitability. However, in doing so, businesses must carefully balance the need to remain profitable with the risk of losing customers due to price hikes. The following factors should be considered when adjusting product prices during periods of inflation: 🔑 Monitor Competitors: Keep an eye on competitors' pricing strategies and adjust your prices accordingly to stay competitive in the market. 🔑 Price Adjustments: Gradually increase prices to minimize the shock to customers, rather than implementing sudden and drastic changes. 🔑 Cost Analysis: Identify areas where costs can be optimized or reduced without compromising the quality of your products or services. 🔑 Review Pricing Regularly: Continuously assess and adjust pricing strategies in response to changing inflationary pressures to ensure they remain effective. 🔑 Price Anchoring: Introduce premium products or services to make your existing offerings appear more affordable. 🔑 Discounts and Promotions: Offer targeted discounts or promotions strategically to sustain sales volume and appeal to price-sensitive customers. 🔑 Tiered Pricing: Provide different pricing tiers for your products or services to cater to various customer segments, ensuring you can appeal to a broader audience. 🔺 By carefully considering these factors, companies can effectively manage their pricing strategies during inflation, maintaining profitability while minimizing the impact on customer loyalty 🔺

How do you adapt your pricing to inflation? The Consumer Price Index (CPI) rose 7.5% in 2021, faster than any time since 1982. Increasing prices to match inflation is a slippery slope. Many companies’ knee-jerk reaction is to raise prices at or around the rate of inflation, but doing that can ruin customer relationships. However, keeping prices the same will eat up profits and could even put you out of business.    According to McKinsey, here are 5 ways to ADAPT your pricing to inflation: Focus on total customer and product profitability, not just cost changes Customize price increases for each customer and product segment, but remain competitive on key items Have a cross-functional team of dedicated decision makers to manage price increases Reimagine product and/or adjust product designs to help manage costs Meticulously track performance management and make adjustments as you go Finally, don’t forget to clearly communicate the steps you’re taking when dealing with inflation. Tell your customers you recognize the problem, and that you're taking thoughtful steps to manage pricing while keeping them top of mind. At Value Logic Solutions, we’ll help you find ways to communicate price changes to your existing customers. We'll also find the pricing model that'll generate the highest profits for you. Are you ready to stop underpricing your products and services? Get our free pricing system today! Q. How are you adapting your pricing to inflation? #managementconsulting #inflation #businesspricing #pricing #operationsmanagement

In the past couple of years, many of my clients have faced a common trend: despite increased sales, their cost of goods sold has also climbed, leading to higher sales but lower profits. How does this occur? Inflation plays a significant role, driving up the costs of materials and services. Over on my blog I share three powerful strategies to help you navigate and improve profitability during inflation. Read the article here: https://lnkd.in/gJEg5QQT

This is Silent Profit Killer in Your Business :- Key Insight: If you haven't raised your prices in the last few years, inflation has likely eaten into your profits. Example: In 2017, if you were selling a product for $100 with a 20% margin, and you didn’t adjust your prices, by 2024, your margin is effectively zero due to inflation. Fact: A $79 price in 2017 is equivalent to $100 today. If your costs have increased but your prices haven’t, you’re operating at a loss. Solution: Regular price adjustments are not optional—they are essential. Even small annual increases of 3-6% can help you keep pace with inflation and maintain your profit margins. #Inflation #PricingStrategy #BusinessManagement

In times of rising inflation, it's crucial for businesses to revisit their strategies and evaluate their offerings. Before making any price adjustments, consider rethinking your business model and product mix. Simply increasing prices without exploring all available options could lead to bigger challenges down the road. For a detailed guide on how businesses can tackle inflation effectively, read our post: #inflation #operationalcosts

Inflation has a chain reaction on businesses and consumers. Because as the prices of goods and services increase, customers’ purchasing power is also affected, leading to a decrease in purchases made. This is one of the effects of inflation on businesses, but there is a way to combat it and rise. In this article, we stated five effects of inflation and what you can do to rise above it. Read here 👇 https://lnkd.in/dSSzeYYX