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Increasing Consumer Prices? Proceed with Care

Business leaders don’t have to look very far to see consumer outrage at companies like Netflix and Bank of America for inadvisably boosting prices and adding new fees. Before increasing prices, companies would be well served by taking the time and care needed to understand which customers value which products and services, their price sensitivity especially given the current economic conditions, and the competitive landscape.

The Art of the General

Derived from the Greek word strategos, strategy was first narrowly defined as the 'art of the general' and dealt with military campaigns, moving forces, and deceiving the enemy. Leaders such as Genghis Khan and Napoleon studied their opponents and created various battle scenarios before conquering new territories. Since that time, many military strategists, most notably Sun Tzu, Napoleon and Patton, have attempted to encapsulate a successful strategy in a set of fundamental principles.

Numbers Never Lie: An Observation on Sports and Analytics

As a businessman and avid sports enthusiast, it recently occurred to me that my job and my passion have something in common. While watching the baseball playoffs, and also speaking to companies who are now looking to close out their final quarter of 2009, I realized that successful organizations in sports and in other industries are increasingly turning to analytics to improve their performance.

Pricing in an Inflationary Downturn

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.

Innovation Trickles in a New Direction

Products traditionally are created in rich nations and repackaged for emerging ones. But General Electric, Nokia, and others are reversing the process .

Pricing in an Economic Downturn - A Pricing Manifesto for CFOs

Yes, recessions are scary for businesses. But deflation is scarier. Deflation leads to Great Depressions. So now is not the time for companies to engage in price wars. As sales managers across the country threaten to drive down prices in a destructive scramble for declining volume, now is the time for CFOs to show true courage, remove inefficient capacity, enforce pricing discipline, and ensure their companies price for profit.

Change with Your Customers and Win Big

Companies should exploit an economic downturn by identifying and meeting emerging customer needs that competitors can’t—or don’t even see. For consumers, the world is changing: Fuel prices are volatile, jobs and compensation are in jeopardy, loans are harder to get, and debts are more difficult to pay off. For B2B customers, volumes and margins are shrinking, credit is tightening, and suppliers are getting tougher. Under these pressures, customers need new types of offerings. It’s an ideal time to go on the strategic offensive and innovate by segmenting customers.

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