Set Prices With 5 Stakeholders In Mind

Set Prices With 5 Stakeholders In Mind - Gettyimages 1206462979 New 510415

With inflation at record levels, the survival of your business depends on whether you set the right price for your products. Why is pricing so important now? In a nutshell, it affects all a company’s stakeholders — including consumers, employees, suppliers, competitors, and shareholders.

Sadly, there is no simple formula for how to balance the interests of your company’s stakeholders and the right answer varies by industry and company. Here is how to think about pricing through the lens of each stakeholder based on a Charlotte, N.C. restaurant — Good Food on Montford (GFOM).

Customers 

If you are the dominant provider in an industry with few competitors, you may be able to raise prices to maintain high profit margins. Most businesses face rivals who compete by giving customers more of what they want at a low price.

If business leaders decide to be a Low Cost Producer — they should offer a good product at the lowest price. If a Differentiator, they should supply a top…

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This article was written by Peter Cohan and originally published on www.inc.com