Prices: How to Deal with Inflation and Recession?

Making real sales projections, segmenting prices and designing savings options are some of the strategies that companies can use to protect their profitability in contexts of inflation and recession.

Friday, July 19, 2019

Ariel Baños, price management specialist and founder of Fijciondeprecios.com, details techniques that could help companies avoid negative effects on their finances, when faced with scenarios of rising prices and low dynamism in economic activity.

Detail of the three recommendations:

  • Synchronize sales projections: If the market goes down, sales projections will inevitably have to be adjusted. It will not be possible to solve this situation via prices, since if the volume is maintained, it will probably be at the expense of resigning a lot of profitability.

  • Price segmentation: Even in declining markets, some customers are still willing to pay the prevailing price. Therefore, price reductions should never be generalized, but a segmentation perspective should prevail. The promotions and discounts applied must be very selective, using the appropriate filters, such as coupons, special days or times or loyalty cards, among others.

  • Designing savings options: For customers who are more concerned about saving, in the face of the downturn in the market, special proposals should be designed, including, for example, second lines and also economic packaging, such as reusable containers, bulk sales or smaller presentations.

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fijaciondeprecios.com

Organization that operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
Phone: (0341) 156022290

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