Beating Inflation: An Agile, Concrete and Effective Corporate Guide

Description

Is unabated inflation the new normal? Inflation is back and here to stay. For companies, this means that the world in which they do business has fundamentally changed. This book examines inflation from multiple perspectives and offers actions and strategies for companies to cope with and manage it to ensure their survival. For businesses and consumers, it is not a question of eliminating inflation, but how to cope with it in order to suffer as little damage as possible. This includes not just price management, but also sales, finance, purchasing, cost management along with digitalization and innovation activities in equal measure. It also requires corporate cultural change, which if managed fast and successfully, the prospects of defeating inflation and thus ensuring the survival of the company are good. Preface Contents 1: Comeback of the Inflation Specter Monetary vs. Commodity Value Current Inflation Sustained Inflation Inflation in Food Prices Summary 2: Victims and Profiteers of Inflation Companies, Managers, and Inflation Lack of Inflation Experience Consumers and Inflation Evasive Strategies Consumer Reactions Savings Behavior Consumer Financing Employment Changed Purchasing and Price Behavior The State and Inflation Summary 3: Getting Ahead of Inflation Inflation’s Fast Start Money Supply Driving Inflation Agility and Timing Preemptive Pricing Frequency of Price Adjustments Summary 4: Understand Profit Mechanics Profit Terms Nominal vs. Real Profit Phantom Profit Economic Profit Profit as a Cost Profit Situation Profit Defense Summary 5: Optimize Prices in Line with Inflation Negotiated and Fixed Prices Varying Inflation Rate and Net Market Position Profit Impact Summary 6: Control Value-to-Customer Value Enhancement Innovations Value Communication Additional Services Guarantees Unsuitable Instruments Summary 7: Lead in Competition Influence of Competitive Prices Competitor Reaction Price Leadership Signaling Summary 8: Strengthen Pricing Power Pricing Power by Industry Cementing Pricing Power Buying Power Cost Disclosure Creating Pricing Power CEO and Pricing Power Summary 9: Exploit Digital Opportunities Price Transparency Value Transparency Marginal Cost of Zero Summary 10: Apply Smart Pricing Tactics Price Escalator Clauses Contracts Without Price Escalator Clauses Price Differentiation Less Expensive Alternative (LEA) Price Differentiation by Product Category Reduction in Package Size Price Thresholds Discounts Information Requirements Summary 11: Introduce Innovative Pricing Systems Dynamic Pricing Multidimensional Pricing Systems Performance-Based Prices Bundling vs. Unbundling Freemium Price of Zero Pay-per-Use Summary 12: Toughen the Sales Force Responsibilities Culture Change Plugging Leaks Incentives Segmentation Customer-Specific Pricing Power Sales Controlling Summary 13: Prioritize Finance The Value of Money Cash Management Long-Term Investments The Challenge of Economic Profit Phantom Profits Summary 14: Reduce Costs Who Is Affected by Cost Reductions? Volumes and Prices Changed Role of Purchasing Time Requirements Cost Structure and Risk Break-Even Volumes Future Hedging Summary 15: What to Do – Conclusion Create Awareness Establish Profit Transparency Call Functions to Responsibility Increase Agility Strengthen Pricing Power Restructure Pricing Models Upgrade the Sales Force Make Use of Digitalization Prioritize Finance Reduce Costs Conclusion