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How are price increases being implemented in the current times of inflation? Are the responsible executives prepared for "Inflation Pricing"? Do they act quickly and decisively enough, with a strategic concept, differentiated in the price increases? The current study by PFH Private University of Göttingen on "Inflation Pricing" provides insights.

PFH Study “Inflation Pricing”: How do companies implement price increases?

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Price increases have been a highly topical and also sensitive issue for months. Shortages of electronic components, drastic price increases for many materials, exploding sea freight rates, price increases due to the war in Ukraine for gas, oil and electricity, at the same time wage demands by trade unions in unusual magnitudes: This is the environment in which companies have to pass on their increased and presumably also further increasing costs to their customers.

But how are such price increases implemented? Are the responsible executives prepared for “Inflation Pricing”? Do they act quickly and decisively enough? Do they have a strategic concept for the procedure? How differentiated do they implement price increases?

Price adjustments have always been a strategically important component of a comprehensive pricing strategy. They are at the center of the present study, in which we have focused for the first time on a single pricing process, namely price adjustments.

The study is available for free download at the following link:
https://www.unicconsult.com/wp-content/uploads/2022/08/PFH.BRO_.130.220830_Studie_InflationPricing_RZ_web.pdf

Photo: Simon Kadula, pexels.de

Inflationsbdingt sind Unternehmen beim Pricing derzeit stark unter Druck. Wie setzen Unternehmen in diesen Krisenzeiten Preiserhöhungen durch? Im aktuellen Newsletter stellen wir Ihnen dazu die wichtigsten Ergebnisse unserer gerade fertiggestellten Studie zu Preisanpassungs-Prozessen vor.

Pricing-Newsletter No. 63 (2022): Inflation Pricing: How do companies implement price increases? Results of the Pricing Study of PFH Göttingen 2022

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Inflationsbdingt sind Unternehmen beim Pricing derzeit stark unter Druck. Wie setzen Unternehmen in diesen Krisenzeiten Preiserhöhungen durch? Im aktuellen Newsletter stellen wir Ihnen dazu die wichtigsten Ergebnisse unserer gerade fertiggestellten Studie zu Preisanpassungs-Prozessen vor.

Jetzt kostenlosen Zugang erhalten zu allen unseren Pricing Studien, zu unseren Pricing News und zu unseren mehr als 70 Pricing-Newslettern, mit denen Sie zum Pricing Experten werden können.

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 and asked, among others, pricing expert Hans-Christian Riekhof for his assessment.

Rising production costs force SMEs to optimize their pricing

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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.

Link:
Full article in Creditreform magazine:
https://creditreform-magazin.de/finanzen/preise-erhoehen-pricing/
Screenshot: Creditreform magazine
In times of the Corona pandemic and the Ukraine war, it is a difficult task to communicate price increases successfully. Under the title "Trapped in the Price Spiral", the marketing magazine Absatzwirtschaft investigates the question of how brands can still succeed and interviews, among others, the pricing expert Prof. Hans-Christian Riekhof.

Sales Marketing on the Communication of Price Increases

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In times of the Corona pandemic and the Ukraine war, it is a difficult task to communicate price increases successfully. Under the title “Trapped in the Price Spiral”, the marketing magazine Absatzwirtschaft investigates the question of how brands can still succeed.

In the confusion of raw material shortages, tearing supply chains and record inflation as effects, it is becoming increasingly difficult for brand companies and retailers to adjust prices and to communicate this successfully. In answering the most important questions on the subject, the magazine also sought the assessment and advice of Hans-Christian Riekhof, Professor of International Marketing and expert in price management at the Private University of Göttingen.

Pricing expert Riekhof: Price controlling is underdeveloped in many companies

In response to the question of how marketing should accompany the communication of price increases, he assigns the task to marketing to announce increases and prepare end consumers for them. These messages would always also indirectly address competitors.

At the B2B level between manufacturers and retailers, the role of marketing is less. Here, marketing or product management must develop the line of argument, but the actual implementation of the price increases is the responsibility of sales, the pricing expert is quoted. Subsequently, good price controlling is required, i.e. the subsequent analysis of one’s own price strategy, “a function that is underdeveloped in many companies”, according to Riekhof.

Photo/Screenshot: ©Eva Vasari

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Links

Read the full article on absatzwirtschaft.de:
www.absatzwirtschaft.de/gefangen-in-der-preisspirale-233977

Read/download the full article as pdf:
https://www.unicconsult.com/wp-content/uploads/2022/08/Gefangen-in-der-Preisspirale-Absatzwirtschaft.pdf

Wie gehen bekannte Unternehmen mit dem Thema Preisanpassungen um? Welchen Aufwand betreiben sie bei Preiserhöhungen und Preissenkungen? Und wie gut haben Sie, liebe Leser/innen, Ihren Preisanpassungsprozess im Griff?

Pricing-Newsletter No. 8 (2017): Put Your Price Adjustment Process to the Test

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Wie gehen bekannte Unternehmen mit dem Thema Preisanpassungen um? Welchen Aufwand betreiben sie bei Preiserhöhungen und Preissenkungen? Und wie gut haben Sie, liebe Leser/innen, Ihren Preisanpassungsprozess im Griff?

Jetzt kostenlosen Zugang erhalten zu allen unseren Pricing Studien, zu unseren Pricing News und zu unseren mehr als 70 Pricing-Newslettern, mit denen Sie zum Pricing Experten werden können.

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