The Ledger

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Tag Archives: pricinganalytics

Harvard Business Review: 7 Lessons on Dynamic Pricing (Courtesy of Bruce Springsteen)

“Raising prices is rarely a frictionless event where customers readily agree. It is inevitable that some will complain and possibly not purchase. In such cases, the most important thing producers should focus on is making sure the price is backed up by value. Whether or not Springsteen’s pricing strategy is deemed a success will depend on him performing a strong “it was worth the price” concert. Given his track record of innovation and dedication to perfection, my money is on Bruce.”

Read More at Harvard Business Review >

CFO Insights: How CFOs Can Rise to Meet the Challenge of Soaring Inflation

“According to one Deloitte analysis, the rewards of price increases often outweigh the risks. The analysis found that if a company with 35% gross margins raises prices by 5%, the company’s sales volume would need to fall by more than 12.5% for the price hike to impact contribution margin negatively. Of course, some competitors will likely hold the line on price increases to gain market share.”

Read More at Deloitte >

Global Finance Magazine: Navigating The New Wave Of Food Price Hikes

“With the warring countries accounting for around one-third of global wheat exports, prices are at an all-time high, but that’s just the tip of the iceberg. In addition, sanction-hit Russia is a major exporter of fertilizer ingredient potash, a shortage of which could lead to lower yields and higher prices for a range of crops. Fuel prices are also making logistics expensive.”

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CFO Dive: Small Businesses See Inflation as No. 1 Challenge

“Rising prices for months have disrupted CFO budgeting, risk management, forecasting and pricing, and show no signs of easing.”

Read More at CFO Dive >

CFO Journal: How CMOs and CFOs Can Collaborate on Pricing

“Companies should build a capability around pricing and revenue management, just as they have built capabilities around R&D, finance, marketing, and operations. Pricing is critical—it touches everything in the organization. Companies should have a coordinating function that forces a dialog between CMOs and CFOs, and they should have the data, insights, and tools to support it.”

Read More at The Wall Street Journal >

Harvard Business Review: 3 Strategic Options to Deal with Inflation

“Inflation in 2022 is a different story. Managers now enjoy a level of market visibility and agility that their predecessors could have hardly imagined even one generation ago. Managers have much better data and more sophisticated tools to analyze and turn this data into a useful information to support decisions. It’s an ideal time for them to treat inflation as a strategic opportunity rather than a tactical challenge, and to choose from a better set of options. Instead of worrying about how much more to charge their customers, they should devote their resources to figuring out how and why they should be charging them.”

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CFO Dive: 5 CFO trends to watch in 2022

“But few issues that CFOs can expect to deal with in 2022, from pricing goods and services to setting wages and salaries to managing taxes, will be addressed without the specter of inflation hanging over them.”

Read More at CFO Dive >

CFO Journal: Talent, Performance, Growth: CFOs’ Top Priorities for 2022

“To improve financial performance and boost their companies’ bottom lines, CFOs indicate that they plan to use a range of levers, such as increasing margins, sharpening EBITDA, increasing efficiencies, managing profitability, and hitting transformational milestones. Pricing is another lever they intend to utilize, including to navigate inflation. In fact, more than three-fourths (76%) of CFOs note their organizations will raise prices for a substantial portion of their products and services to offset inflation.”

Read More at The Wall Street Journal >

SF Magazine: The Four Levers of Revenue Management

4 key levers of revenue management modified from the Dupont ROI Framework:

  1. Pricing Basis
  2. Inventory Allocation
  3. Product Configuration
  4. Duration Control

Read More at SF Magazine >