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The ongoing exorbitant rise in purchasing prices for energy and raw materials hits German SMEs hard. Companies should quickly get their pricing in order in the face of rapidly rising or fluctuating production costs – but how? This question is addressed by the Creditreform magazine in a current article. The business magazine for SMEs (Handelsblatt publishing group) publishes assessments by experts, including Hans-Christian Riekhof as a specialist for strategic pricing issues. One of his key statements: “Companies often approach pricing naively.”

Massive price increases threatening the existence of many companies

The situation is serious, the magazine quotes Stefan Ortolf from DZ Bank. Russia’s war against Ukraine is affecting a large number of medium-sized companies. With regard to the current situation, about 72 percent of the companies surveyed for a current Creditreform study consider the massive price increases to be the biggest challenge for SMEs this year. The situation does not tolerate any delay – companies must act quickly.

Pricing expert Riekhof: Some companies treat the topic of pricing completely naively – this is now taking its toll

Many managers have never seen such price increases. Today’s entrepreneurs often lack experience. As Hans-Christian Riekhof, Professor of International Marketing at PFH Private University of Göttingen and sought-after pricing expert, finds in his empirical studies, some companies approach the topic of pricing very professionally, but some also completely naively. “The latter is now taking its toll. Because those who have not defined a process to put their prices to the test once or several times a year and possibly adjust them, now lack speed, says Riekhof. ”

In addition, the wrong people often decide on price increases in many companies. There should be consensus across the department boundaries of product development, marketing, product management, sales, service, controlling about where to go in terms of price strategy, explains the pricing specialist”, who imparts strategic pricing knowledge and practical action options to managers in regularly held pricing seminars.