Over 50 years ago, GE hired young Professor Ram Charan and a small team of other experts to create and deliver a training course for GE managers. The topic was difficult to talk about, but it was necessary. The subject was running a gainful, growing business during substantial inflation.
The Current Situation
Prices are being raised in all sectors, or, as an alternative, B2C businesses are reducing the amount of product in a package to keep the same price and maintain their margins. For example, when I first heard this, I was mildly shocked: Dunkin’ Donuts stores recently stopped putting a thin slice of lemon in their iced tea drink.
Chief Executive reports: “A recent survey found 61% of small businesses in the U.S. had raised prices for their goods and services in January — the highest percentage since 1974.”
Macro causes of the current inflation include:
- A protracted time of interest rates that are near-zero
- COVID-driven spending by the government
- Broken supply chains
- The Great Resignation (Churn)
- The Russian invasion of Ukraine
This article appeared on Thomas Insights on April 6, 2022. Tap here to read the complete article.
To read about how inflation affects spare parts prices, tap here.
About Middlesex Consulting
At Middlesex Consulting, we partner with the field service teams of B2B capital equipment companies challenged to grow their top and bottom lines. We use value creation, services marketing, and customer experience techniques to identify and create service offers that achieve customers’ desired business outcomes. To discuss how we can grow your business write to Sam here.