Pricing in an Inflationary Downturn (191K PDF file)
By Cheri N. Eyink, Michael V. Marn and Stephen C. Moss,
The McKinsey Quarterly, September 2008
In the current environment, costs are rising as price sensitivity increases. Companies who want to sustain this downturn need to invest in areas that give them richer insights into their pricing environment.
Companies need to manage the profitability of individual customers and transactions with greater precision, develop richer insights into their customers' changing needs and price sensitivities, and understand more clearly the microeconomics that shape their own industries and those of their suppliers. This article covers six tactics aimed at maintaining the best balance possible between sales volume and profit margins in the current challenging environment.
