You Can Raise Prices in a Downturn

Treat pricing as a collaboration with customer
by Sean Silverthorne – HBS Working Knowledge

A bad economy isn’t an excuse for dropping your rates or avoiding a rate increase. Frank Cespedes, a Harvard Business School senior lecturer, has researched the topic of prices in tougher economic times, which he refers to as “performance pricing.” He says, “Pricing builds or destroys value faster than almost any business action, especially in tough and uncertain economic conditions when price is a key and visible strategic choice.”

What do you think of “performance pricing”?

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