Inflation means that prices are changing. It also means that consumers and customers change their perceptions with it. At least some of the time, though not all the time. So in inflationary times and inflationary markets, it is important for vendors to stay up-to-date on their consumers' willingness-to-pay.

PriceBeam has recently done a series of consumer research studies, comparing willingness-to-pay for the same brands and products in 2022 against what it was in 2021. The learnings are important and carries implications for all revenue growth teams.

More companies than not increased prices in the past 12 months, reasons ranging from increases in input material costs to a general expectation that it was now easier as competitors raised their prices, and often the "market" (read: the customers) expected it due to high inflation. If not now, then never, seemed to be the sentiment. 

Many companies too price increases last year, as they watched raw material prices go up, or saw an opportunity to increase prices along with the rest of the market. So far in 2022, some companies increased (again) while some vendors are now asking themselves when market resistance will be too difficult to ignore. Surely, some customers or retail partners, e.g. Tesco in United Kingdom, have made some very public disputes with vendors whom they considered to be increasing their prices by too much.

At PriceBeam we work with a range of vendors around the globe, covering a variety of industries. Here are some considerations we see for the next 12 months when it comes to increasing prices further.

Who owns the pricing discipline in your company? Who should own it? Some organizations have dedicated "Pricing" or "Revenue Growth" departments, whereas others leave it to the classical departments of Finance, Sales or Marketing. This article suggests that regardless of where the responsibility lies today, Marketing should be heavily involved and more often than not "own" the price setting process. 

Conversely, the marketing team should also take ownership and not shy away from the pricing discipline. Pricing is one of the classical 4P's as described by famous professor and author Philip Kotler. Price sets the tone of the brand. Price is important. 

In these inflationary times many vendors ask themselves whether to increase their own prices or not, given what the market is doing. Of course, a straightforward price increase across the board can be a solution, but a better approach is to look for those consumers who are willing to pay more and then through market differentiation and product segmentation to differentiate the areas of the business that takes the price increase.

Revenue growth management and pricing are disciplines in tremendous growth, as companies are learning that one percent improvement in price or revenue goes straight to the bottom line. In times of inflation as well as pressures on both supply chains and customers, pricing has never been more important. 

At PriceBeam we are 100% focused on pricing and revenue growth and these are some of the trends that we see:

The Ultimate List of Great Books on Pricing 

Individual Book Review:

Winning the Profit Game: Smarter Pricing, Smarter Branding          

Book Author: Robert G. Docters, Michael R. Reopel,  Jeanne-May Sun and Stephen M. Tanny

This extensive guide to maximizing profits offers refined, yet common-sense practices that turn value into money - making pricing a convincing, high-return activity, essential to the development of new services and products.  

Winning the Profit Game is one of the books selected from The Ultimate List of Great Books on Pricing we have compiled. Pick up a book or two - to help you charge the right price for your products or services. 

Continue reading through our review of Winning the Profit Game below!

The Ultimate List of Great Books on Pricing 

Individual Book Review:

Innovation in Pricing: Contemporary Theories and Best Practices               

Book Author: Stephan Liozu and Andreas Hinterhuber

Most companies, continue to use a cost or competitor based approach to set their prices. Companies prioritize product or business model innovation, whilst innovation in pricing has received minimal attention. This book examines how innovation in pricing can drive profits.

Innovation in Pricing is one of the books selected from The Ultimate List of Great Books on Pricing we have compiled. Pick up a book or two - to help you charge the right price for your products or services. 

Continue reading through our review of Innovation in Pricing below!

The Ultimate List of Great Books on Pricing 

Individual Book Review:

The ROI of Pricing: Measuring the Impact and Making the Business Case                  

Book Author: Stephan Liozu and Andreas Hinterhuber

This book, edited by globally renowned thought leaders Andreas Hinterhuber and Stephan Liozu, is the first to outline contemporary theories and best practices of documenting pricing ROI. It provides proven methods, practices and theories on how to calculate the impact of pricing activities on performance. Marketing ROI is now a common concept: this collection proves to do the same for pricing.

The ROI of Pricing is one of the books selected from The Ultimate List of Great Books on Pricing we have compiled. Pick up a book or two - to help you charge the right price for your products or services. 

Continue reading through our review of The ROI of Pricing below!

The Ultimate List of Great Books on Pricing 

Individual Book Review:

Pricing And Revenue Optimization                   

Book Author: Robert L. Phillips

The authors, founders of Nomis Solutions, reveal the methologies from their courses taught at Columbia and StanfordBusiness Schools. The book provides the simple concepts of pricing and revenue optimization in a practical way to MBA students, MS students, and advanced undergraduates. 

Pricing and Revenue Optimization is one of the books selected from The Ultimate List of Great Books on Pricing we have compiled. Pick up a book or two - to help you charge the right price for your products or services. 

Continue reading through our review of Pricing and Revenue Optimization!