Current scenarios on pricing
In a crisis like the current covid-19 pandemic, how many scenarios on price are there?
There are two scenarios
In a crisis like the current covid-19 pandemic, how many market scenarios on demand are there?
There are three main scenarios
How many points were mentioned of things to do right during a crisis regarding pricing?
There are 5 things to do/get right during a pandemic.
How many points were mentioned of things to do avoid during a crisis regarding pricing?
There are 5 things to completely avoid during a pandemic.
Which are the current price scenarios that exist in times of crisis such as the covid-19 pandemic?
1. Downward pressure on prices
2. Upward pressure on prices
Which are the current demand scenarios that exist in times of crisis such as the covid-19 pandemic?
1. Companies experiencing a sharp and unprecedented drop in demand
2. Companies experiencing an explosive increase in demand
3. Companies with muted or lumpy demand
Mention the 5 things to do/get right during a pandemic.
1. Every pricing action is legal, ethical, and community minded
2. Through-cycle view of customer relationships
3. Strengthen value-focused messaging
4. Create ‘flex’ in pricing
5. Establish a commercial ‘value council’
Mention the 5 things to completely avoid during a pandemic.
1. Taking advantage of customers
2. Assuming that every demand problem can be solved with pricing
3. Relying on old price-sensitivity research
4. Slashing list prices without considering other options
5. Attacking competitors’ key accounts without preparing for a sharp response
How can customer pain points be addressed in a crisis situation?
With flexible payment terms, unbundling, and one-time promotions.
What are some examples of industries that experimented an unprecedented drop in demand?
The hotel industry, airlines, food services, among others.
____ may need updated training in negotiation, value selling, and pricing
Sales force
Instead of reducing list prices without considering other options what are the things that businesses can do?
Companies can run temporary promotions, non-cash discounts or discounts that will increase volumes.
Successful companies drive long-term value creation rather than __________.
Short-term advantage
What should companies that experienced explosive increase in demand focus on?
More important than pricing strategy, the focus should be stabilizing the supply chain, keeping products on the shelves, addressing customers’ urgent needs, and maintaining quality.
Mention the tools for “Flex” Pricing
Unbundle offerings
One-Time promotions
Flexible payment terms
Credit for future purchases
In times of crisis, buyers may _____ because they feel uncertain or their needs have changed significantly.
delay purchases