A Pricing Storm Is Brewing


For companies in industries ranging from consumer goods to industrial products, input costs are rising, as the chart shows. And just as the economy has heated up enough for producers to start feeling inflation, more economists anticipate that a recession will hit within the next few years. To effectively absorb these risks, companies can build pricing capabilities that are disciplined, dynamic and informed by data, not gut instinct. Now is an opportune time to fix pricing gaps, as it’s more difficult to do so when firms are fighting cost and market-share battles during a downturn. Pricing remains the most important profit lever to shore up, because it’s essential for profitable growth in any weather.

Related article: When Do I Fix the Holes in My Pricing Roof?

Chuck Davenport is a pricing expert and vice president with Bain & Company’s Customer Strategy & Marketing practice.