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Three Common Pricing Blunders Companies Make during Periods of High Inflation

Three Common Pricing Blunders Companies Make during Periods of High Inflation

Costly pricing blunders are common when inflation spikes. Here's how to avoid them.

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Three Common Pricing Blunders Companies Make during Periods of High Inflation
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This article originally appeared on Fortune (subscription required).

“We’re at a burning platform moment,” says Mark Burton, a Boston-based consultant at Bain.

As inflation soars, companies are increasingly getting pummeled by rising labor, input, and logistics costs, putting “tremendous” pressure on the bottom line, he says. Inflation has now risen to a 40-year high of 7.5%, and just last week, Federal Reserve chairman Jerome Powell said that Russia’s invasion of Ukraine will likely worsen inflation. So it’s hardly surprising that the most urgent requests among Bain’s clients center on pricing—specifically, crafting an effective inflation response.

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