Economic growth in the developed markets of North America and Europe have slowed to a pace that is often lower than inflation. Most economic forecasts believe that slow growth or even stagflation will remain for next three years or more as these economies continue to de-leverage from both private and public debt incurred before 2008.
While cost take-out programs can increase operating margins, they tend to be one-time events. The public markets may also penalize companies with shrinking valuation multiples if topline growth shows signs of tapering off.
Our experience with several clients leads us to believe that pricing is a neglected and poorly implemented matter in most organisations, and that companies can realise significant financial benefits from a review of their pricing strategy.