I run a business @ExanteData. I have always been thinking of the price of our product/service as only a function of its quality.
But now, as some our our cost rise rapidly (heath care up >10%, IT equipment > 30%), I start thinking that there has to be a cost adjustment too.
But now, as some our our cost rise rapidly (heath care up >10%, IT equipment > 30%), I start thinking that there has to be a cost adjustment too.
It is just an anecdote. But when the supply chain issues and other cost pressure are so broad and long-lasting, it is not crazy to think that there will he 2nd and 3rd round effects from the inflation we observe now.
My inflation expectations have been (in my head) rounding to roughly zero for the last five years. It has not been a feature of my price setting. And now I am observing stuff that makes me think differently about cost, and appropriate pricing.
I am probably not alone. Business managers, CFOs, product managers, etc etc, will all be facing a different reality in this cycle, and their behavior will be affected.
This cycle is FAR from normal.
This cycle is FAR from normal.
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