How To Price in a Post-COVID-19, Post-Inflationary World

06/22/23 • 19 min

Consumer businesses have faced dramatic increases in input costs over the past 24 months, primarily due to the lingering impact of COVID-19. To avoid profit erosion, most businesses responded by passing cost increases on to consumers in the form of higher prices. But consumers, concerned with a potential recession, are adjusting their spending habits. With the worst of inflation hopefully behind us, now is the perfect time for business leaders to reflect on their 2022 pricing actions and consider a holistic reevaluation of their pricing strategies in light of current market conditions. As consumers are forced to stretch their dollars, companies can drive value by reassessing their pricing strategies to make them more reflective of the current macroeconomic environment. Business leaders should begin by reviewing pricing principles and considering how to make pricing a strategic lever that drives revenue and margin growth.

In this episode, our experts will discuss:

Why pricing is important for your business
The benefits and importance of value-based pricing
Evaluating benefit/trade-off features and how it informs strategic decision making
The best practices to adopt to optimize promotional effectiveness

To provide insights on these topics, we hear from Rob Haslehurst, Managing Director and Office Head of L.E.K. Consulting’s Boston Office; Alison Schilling, Managing Director and Partner at L.E.K. Consulting’s Chicago Office; and Claire Morgan, Managing Director and Partner at L.E.K. Consulting’s Boston Office.

Connect with our experts on LinkedIn:
Rob Haslehurst: https://www.linkedin.com/in/haslehurst/
Alison Schilling: https://www.linkedin.com/in/alison-schilling/
Claire Morgan: https://www.linkedin.com/in/claire-morgan-37596734/

Visit L.E.K. Consulting at https://www.lek.com/

In this episode, our experts will discuss:

Why pricing is important for your business
The benefits and importance of value-based pricing
Evaluating benefit/trade-off features and how it informs strategic decision making
The best practices to adopt to optimize promotional effectiveness

Visit L.E.K. Consulting at https://www.lek.com/

Previous Episode

Tackling the Healthcare Workforce Shortage

Chronic workforce shortages are leaving healthcare providers facing unprecedented challenges. Operating models are being undermined, as is the ability to create value or deliver growth and profits. Historically, providers were often able to rely on recruiting their way out of such problems. However, the structural and global nature of current workforce shortages means this is no longer an option for most operators. Tackling the workforce shortage is now therefore a major strategic issue and should be a primary focus for both operators and investors in the sector.

In this episode, our experts will discuss:

The factors affecting workforce shortages
The near, medium, and long-term need to take action
The importance of investing in healthcare

To provide insights on these topics, we hear from Eilert Hinrichs, a Partner in L.E.K. Consulting’s London office, and Louisa Chaves, Principal in L.E.K. Consulting’s London office.

Connect with our experts on LinkedIn:
Eilert Hinrichs: https://www.linkedin.com/in/eilerthinrichs
Louisa Chaves: https://www.linkedin.com/in/louisachaves

Visit L.E.K. Consulting at https://www.lek.com/

Next Episode

The Connected Home: Can Your Company Plug Into Opportunity?

The connected home ecosystem comprises an estimated 1.8 billion smart devices, and that number is climbing. In this episode, we’ll explore ‘The Connected Home: Can Your Company Plug Into Opportunity?’ In L.E.K. Consulting’s recent survey, 89% of current connected-product owners had considered purchasing a connected device within the past year. Moreover, 60% of current connected-product nonowners also had considered purchasing a connected device. Depending on the product, search volume for key connected products increased two to three times from 2017 to 2022. And despite variations in the speed of penetration growth, most third-party forecasts expect increases of more than 20% over the next five years or so. Factor in the new Matter standard that enables greater interoperability, and this presents an obvious growth opportunity for an array of prospective players. These include members of the investment community and players within industries that have an organic connection to the space across seven basic categories.

In this episode, we will discuss key topics including:

How, driven by more engaged homeowners and more affordable, better-performing, easier-to-use technology, the connected home ecosystem continues its rapid growth
Why choosing the right path is critical so that every player will succeed in this transforming world
How companies can determine whether they have a role in the connected home and, if so, what that role is
Why companies need to determine whether they will be orchestrators or enablers

To provide insights on these topics, we will hear from Paul Bromfield, Managing Director and Partner at L.E.K. Consulting’s New York office; Gavin McGrath, Managing Director and Partner at L.E.K. Consulting’s Boston office; and Corey Highfield, Principal at L.E.K. Consulting’s Boston office.

Connect with our experts on LinkedIn:

Corey Highfield: https://www.linkedin.com/in/corey-highfield-b0630628/

Paul Bromfield: https://www.linkedin.com/in/paulbromfield/

Gavin McGrath: https://www.linkedin.com/in/gavinmcgrath/

Visit L.E.K. Consulting at https://www.lek.com/