Optimising your pricing strategy during inflationary times: how to make mindful pricing decisions
How to make mindful pricing decisions during periods of economic volatility
Inflation and rising prices are a key concern for both brands and shoppers. With historic levels of inflation and ongoing supply shortages, consumers are reminded of shelves being empty during the start of the pandemic.
People are especially feeling the pinch of inflation at the supermarket. In the US, grocery store inflation recently was at its highest level since 2008, according to both Kantar and government sources. But make no mistake: consumers are seeing rising costs everywhere they go.
If shoppers are lucky enough to stumble upon full shelves for a particular category today, they often are surprised with sticker shock, seeing higher prices for their favourite products than they may remember. Price increases that don’t feel necessary can frustrate shoppers and potentially hurt repeat purchasing. Already, recent analysis in our Kantar BrandZ global report shows that many brands are failing to justify their perceived price – consumers see them as being worth less than they cost.
Brands face a decisive moment around pricing. Ultimately, success will lie in better understanding category shoppers and making mindful pricing decisions. Now more than ever, it’s crucial to get consumer input before making any price changes.