By Jim Holland, Senior Product Marketing Manager
While we’re living through the effects of the pandemic, consumers and manufacturers alike have realized that pricing factors into supply, distribution, end-customers and a return to positive growth.
Looking forward, many companies are seeking for new ways to meet market demand and maintain a competitive edge while leveraging fair pricing to sustain margins, profit and top line growth.
In the recent article entitled, Pricing in a pandemic: Navigating the COVID-19 crisis by McKinsey & Company, Alex Abdelnour, Todd Babbitz, and Stephen Moss “suggest some do’s and don’ts to help leaders navigate unmapped territory during the pandemic.”
McKinsey continues, “The crisis is also exerting sudden and unprecedented pressures—sometimes up, but more often down—on demand and pricing. In many sectors, from air travel to durable goods, sharp drops in demand, excess capacity, and heightened price sensitivity are converging to drive down prices and destroy value. Many customers are asking for discounts and contract renegotiation, while some competitors are making aggressive pricing decisions.”
McKinsey provides 5 things to get right during the pandemic. They include:
- Make sure that every pricing action is legal, ethical, and community minded
- Take a through-cycle view of customer relationships
- Strengthen value-focused messaging
- Create flex in pricing
- Establish a commercial value council