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B2B Pricing News & Insights Roundup

Vendavo< Vendavo February 17, 2022

As B2B pricing teams work their way through these volatile times, let’s conduct a quick survey of some of the most recent news items about trends and insights in pricing optimization and strategy.

HBR Stresses “Precision Pricing”

This column from the Harvard Business Review reinforces much of what we’ve maintained during this inflationary period: It’s crucial to have accurate B2B pricing that’s based on data-driven insights about what buyers are willing to pay.

Precision pricing is the key to pricing in today’s inflationary environment and in the mixed-inflation markets we can expect in years to come. It’s highly targeted and enables managers to base prices on each product’s true, current costs and each customer’s true, current profitability.”

Harvard Business Review

IHS Markit: Commodity Prices Keep Surging

The aggressiveness of recent inflation is probably no news to any pricing team. New tracking from IHS Markit shows that in commodities, the surge shows no signs of abating.

Our Materials Price Index (MPI) rose 4.5% last week, the largest one-week increase so far this year. Price increases were broad with nine out of ten materials in the index rising. Commodity prices have now risen for six consecutive weeks and are up 19.3% since the end of November, a rally that has now carried the MPI close to its May 2021 peak.”

IHS MARKIT

How Erratic B2B Pricing Impacts One Plastics Manufacturer

Our Kalle Aerikkala recently wrote about the challenges involved in pricing sustainability efforts. Here’s an example, as a US-based plastics company finds itself facing an up-and-down B2B pricing scenario with its suppliers and feedstock markets.

High PCR prices and limited availability have constrained ADS’ efforts to boost the recycled content of its products, even as the company has invested large sums in expanding its recycling abilities…”

PLASTICS RECYCLING UPDATE

You Know It’s Serious When…

It’s outside of B2B pricing, but it’s the sort of bad news that crosses many boundaries. The cost of brewing beer is rising in the U.K., and those costs will have to be passed on to the pub-frequenting consumer. That may be the red flag that drives government to take action in controlling inflation, according to The Guardian.

Lord Bilimoria, who has turned Cobra into a household name since founding the brand in 1989, said soaring costs across the supply chain, from manufacturing and energy to freight and staffing, meant prices would have to rise.

“Our input costs in every way – bottling, energy – are up,” he told BBC Radio 5 live’s Wake Up to Money programme. “Freight costs have soared, sometimes 10 times. Wages are increasing and on top of that there are labour shortages. It does mean that businesses have to put up prices. But the consumer is already feeling the squeeze. It is a really challenging situation for everyone.”

THE GUARDIAN