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Pricing Study 2023: PFH Private University of Göttingen presents new empirical investigation of pricing processes in companies
The PFH Private University of Göttingen has now published the Pricing Study 2023. This empirical investigation examines pricing processes of companies of various industries and sizes. After four pricing studies by the PFH, published in the years 2009, 2012, 2015 and 2018, the Pricing Study 2023 provides current analyses. The results are also influenced by the unusual challenges for the companies, such as the Corona pandemic and the Ukraine war with resulting supply shortages and the experience of unusually high inflation rates. With the changed framework conditions, the companies’ pricing faced completely new requirements.
The subject of the empirical investigation by Prof. Dr. Hans-Christian Riekhof and Lukas Breustädt were the formation of prices, the internal company attitudes towards pricing, the application of pricing tools, successful implementation and many other topics. “With the study, we also want to highlight potentials in the individual price design processes and show which remarkable approaches to pricing other companies can also apply”, says Prof. Dr. Hans-Christian Riekhof.
One result in advance: the results of the current investigation 2023 confirm a conclusion that was already made in the previous pricing studies: many companies still underestimate the importance of strategic pricing as the strongest profit driver.
Links
Further studies:
https://www.unicconsult.com/publikationen/forschungsberichte/
Bank Magazine Reports on Inflation Pricing Study
Under the title “Trade turns the price screw” the trade magazine writes on 28.09.2022 about the current challenges of the middle class. Lockdowns, supply shortages and extreme price jumps on the energy side lead to many companies having to adjust their pricing with their customers and also enforce it, so that they remain profit levers.
Numbers from the cross-industry Inflation Pricing Study of the PFH Private University of Göttingen made it clear where the journey was going.
More than 60 percent of companies want to pass on double-digit price increases to their customers. 15 percent calculate price surcharges of 20 percent and more. And 82 percent pass on, for example, price increases that occur in raw materials and preliminary materials.
Further links:
Complete message:
www.springerprofessional.de/link/23470916
Pricing study on Inflation Pricing – Riekhof/Reutel, PFH 2022:
https://www.unicconsult.com/referenz/riekhof-reutel-inflation-pricing-empirische-studie-der-pfh-goettingen-2022/
Marketing Magazine Horizont reports on Inflation-Pricing-Study
Under the title “Companies set prices in inflation across the board – No desire for price differentiation”, Horizont, one of the leading marketing magazines, refers to the recently published inflation-pricing study by the PFH Private University of Göttingen. Pricing expert Prof. Hans-Christian Riekhof and Julius Reutel examined in this empirical study in 2022 how companies implement price increases.
“Rising production costs, supply chain delays, ongoing chip shortages and not least the energy crisis are causing companies to drastically increase prices. According to a current study by the Private University of Göttingen on the subject of inflation, 60 percent of the companies surveyed plan to increase prices by at least 10 percent this year, and 30 percent of the companies even want to increase prices by 15 percent or more”, Horizont reproduces some results. “There is obviously a considerable need for action, among other things due to the raw material price situation”, Horizont quotes from the study.
Further links
Full article (paywall):
Companies set prices in inflation across the board
SpringerProfessional reports on Inflation-Pricing Study
Under the title “Many companies are turning the price screw”, the magazine SpringerProfessional picks up on the inflation-pricing study of the PFH. The empirical study of the PFH Private University of Göttingen, created by the pricing expert Prof. Riekhof and Julius Reutel, investigates how companies are dealing with the current price increases and how they are passing on price increases to their customers.
Pandemic-related lockdowns, supply shortages and extreme price jumps on the energy side have left their mark in sales, especially in medium-sized companies, in recent weeks and months, the magazine writes. The price trend at all levels currently only knows one direction: upwards. This now calls for innovative pricing models. Figures from the cross-industry study of the Private University of Göttingen (PFH) make it clear where the journey is going.
More than 60 percent of the companies surveyed therefore want to pass on double-digit price increases to their customers this year, 15 percent are calculating price surcharges of 20 percent and more, 82 percent are passing on price increases that occur in raw materials and preliminary materials, and 72 percent even expect a second price increase this year. “The larger the company in terms of sales, the higher the approval,” the article says.
One of the surprising results of the study: Above all, new customers will be affected by the price adjustments of the manufacturing companies. According to 35 percent of the companies, prices for new customers will be screwed up above average.
The study is based on a standardized online survey, which was accessed by more than 1,100 people from medium-sized to large companies and of which 163 evaluable questionnaires were taken into account.
Further links
Full article:
https://www.springerprofessional.de/pricing/vertriebsmanagement/viele-unternehmen-ziehen-im-vertrieb-die-preise-an/23470916
Göttingen Daily Newspaper Reports on Inflation-Pricing Study
The Corona pandemic with the lockdowns and the war against Ukraine with the consequences of supply shortages, rising raw material and energy prices as well as inflation: customers, end consumers and companies are currently feeling this. For the Göttingen daily newspaper, this was a reason to pick up on the current empirical study on “Inflation Pricing” by the PFH Private University of Göttingen, in which Prof. Hans-Christian Riekhof and Julius Reutel have examined price policy in the economy.
In their article titled “Companies want to increase prices in the double-digit range”, the newspaper goes into detail on the results of the investigation. In the current situation, significant price increases are inevitable for many companies, the Göttingen daily newspaper quotes the announcement of the PFH. A third of the companies surveyed will implement price increases of 15 percent in 2022, 72 percent can therefore imagine a second increase, more than 60 percent want to raise prices in the double-digit range, 15 percent to 20 percent and more.
“In contrast to the pricing studies of the past years, which the PFH has been conducting since 2009, for the first time such a clear and more than obvious signal towards price increase has shown”, the paper quotes one of the conclusions of the study makers. The perhaps most important finding of the study, it says, is according to Prof. Riekhof, that many companies do not differentiate when implementing the price increases, but proceed very generally.
Further Links
Full article of the Göttingen daily newspaper as pdf:
https://www.unicconsult.com/wp-content/uploads/2022/09/Goettinger-Tageblatt-09.09.20228-Inflation-Pricing.pdf
Pricing study on Inflation-Pricing – Riekhof/Reutel, PFH 2022:
https://www.unicconsult.com/referenz/riekhof-reutel-inflation-pricing-empirische-studie-der-pfh-goettingen-2022/
Brand Article Magazine Picks Up Inflation Pricing Study
Brand Article, a magazine for brand leadership, reports on the results of the recently published Inflation Pricing Study by PFH Private University of Göttingen in a current article. Prof. Hans-Christian Riekhof and Julius Reutel examined in this empirical study in 2022 how companies implement price increases. Responses from 163 companies were evaluated.
According to the study, an inflation rate of ten percent for 2022 is considered possible by many experts. 30 percent of respondents therefore plan price increases of 15 percent and more in 2022, 61 percent of companies will raise prices in the double-digit range. 72 percent of companies can even imagine a second price increase. Only 16 percent of companies clearly say no to this question.
The magazine summarizes the conclusion: “As an overall conclusion, the study’s authors judge that the differentiation of price increases by product categories and by customer groups can be expanded. At some points it becomes visible that a blanket approach is still predominant and that sales is the essential force both in planning and in implementing price increases.”
Further links
Full article in the Brand Article magazine:
https://www.markenartikel-magazin.de/_rubric/detail.php?rubric=marke-marketing&nr=53919&PHPSESSID=aq1br7ckguhrb3pqtrst9irqp3
Inflation Pricing Study – Riekhof/Reutel, PFH 2022:
https://www.unicconsult.com/referenz/riekhof-reutel-inflation-pricing-empirische-studie-der-pfh-goettingen-2022/
VDI Nachrichten refer to Inflation-Pricing Study
The VDI Nachrichten report on the intention of many companies to want to raise their prices due to increased costs. In an article from 06.09.2022, the magazine refers to the results of the current empirical study by Prof. Hans-Christian Riekhof and Julius Reutel, who have examined for the Private University of Göttingen (PFH) how companies control and shape price adjustment processes.
The initial situation: supply bottlenecks and problems in international supply chains lead to rising energy and raw material prices – significant price increases for many companies are inevitable.
82% of the companies state in the study that they want to pass on the price increases for raw materials and preliminary materials. A third of the companies surveyed plan price increases of 15% and more in 2022, 72% of the companies surveyed can even imagine a second price increase this year.
Further results of the study: The evaluations of the investigation indicate that new customers in particular will be affected by the price increases. And many companies forego a differentiated approach to price adjustments and implement price increases very generally.
Further links:
Full article in the VDI Nachrichten:
https://www.vdi-nachrichten.com/wirtschaft/es-wird-noch-deutlich-teurer-unternehmen-wollen-preise-erhoehen/
Pricing study on inflation pricing – Riekhof/Reutel, PFH 2022:
https://www.unicconsult.com/referenz/riekhof-reutel-inflation-pricing-empirische-studie-der-pfh-goettingen-2022/
