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Breaking Down New Economy Business-To-Business Pricing Strategies

Executives are being bombarded with headlines about accelerating inflation, a phenomenon that many of the current generation of business leaders have never experienced firsthand.

Rather than trying to predict macroeconomic trends, executives of B2B companies are better served taking advantage of this environment of flux to implement long-overdue tactical pricing optimization initiatives with reduced risk of customer pushback.

Inflation or not?

PPI inflation has undeniably been significant at over 7% annually, even if measured July 2029 to July 2021. While most agree that we’re not in a 70s style price-wage inflation spiral yet, there is some valid concern. One camp of economists views current inflation as largely transitory, essentially an expected and desirable result of restarting the complex global supply chains that were disrupted by COVID-19. When COVID hit, producer prices declined by about 10% in Q1 2020 and have been on a steady uptrend since.

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