Apart from finding ways to reduce costing, B2B companies need to consider raising prices to maintain profitability in the post-pandemic era.
While outsourcing functions such as IT and payroll can help B2B companies reduce operational costs, it is not enough to maintain profitability in uncertain times. Consider segmenting audiences, and fine-tuning value propositions and pricing for each target segment. Then, find a unique selling point and amplify it.
To justify price increases, conduct market research and get creative about pricing models. Consider innovative pricing models such as subscriptions or activity-based pricing. Adding a valuable service component like installation or vendor-managed inventory to a physical product can also make a difference.
Businesses can also leverage pricing flexibility to target a wide range of customers. But, always provide an explanation for the decision and highlight the value when communicating price increases.
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[6 minute read]