On The Road with ITR Economics

  • by itradmin - Thu, 05/11/2017 - 07:51

I was talking to a group of business executives, and I brought up the idea of raising prices given the increases in their costs, as evidenced by the rising trends in commodities and various producer price indices. Understandably, their reaction was, ”We can’t do that.” The reasons are common and are found in numerous industries and marketplaces. You probably know them already. Pricing pressures are keenly felt in competitive markets, and producers of goods and services are wise in looking for efficiency gains to offset the pricing pressures. Indeed, this is a real ”must” given today’s business climate. Even though many economies are expanding, firms are feeling immense pressure to hold the line on pricing for fear of losing market share.

There will come a time when it will be easier to raise prices. It is possible to get ahead of the pack when it comes to price increases. Knowing, and touting, your competitive advantages will give you the marketing position and power to sell on a strong value proposition. Your bottom line will thank you. Send me an email at abeaulieu@itreconomics.com if you want to know more.

Alan Beaulieu