The Fears of an Unpredictably Changing World
As the globe is still experiencing pressure from price inflation caused by the pandemic and many other economic factors, everyone anticipates even more economic and market flare-ups from the Ukrainian-Russian war in the coming months.
Businesses and countries are fearing the impact of these price shifts as we brace ourselves for years to come, making it difficult to take any secured business decisions.
3 Misleading Price Inflation Solutions
The biggest effect on profits comes from price increases, leading to the main challenge:
how much should I increase prices without losing opportunities for profitability that guarantee results to keep your business steady?
That means these 3 price management methods will no longer work:
- Increase prices based on gut feeling.
- Decrease fixed and/or direct cost, which may reflect on my quality as a brand and product
- Increase investment in communication and/or trade to maximize volume shares.
The only way to survive is to change your old ways
The market research industry has undergone various updates and methods that can support pricing decisions that help navigate market volatility.
Two of these updates are data analytics and predictive modeling which provide outcomes and actions that generate dozens of scenarios and outcomes which then finally pinpoint the best direction.
These methods ensure safe and steady results as we enter an unpredictable era of political unrest and economic price inflation.
New price management decisions are based on looking at your business holistically so you don’t have to actually increase your product prices and risk losing your customers.