Profiting from a recession climate: Effective use of transactional price management

At the onset of an economic downturn, a company’s traditional reaction is to focus on controlling costs, retaining its largest customers and hoping to ride out the storm. At best, this is half a strategy.

Companies that focus on revenue, pricing and overall profitability can survive and even thrive during a recession, but only if they go about it in an effective way. A foundational understanding of the business and visibility into transaction level margin performance are required to make the right decisions. The tools and discipline of transactional price management can help the business address the immediate issues presented during a recession, as well as help position the company for long term, profitable growth. This method can give the business a competitive advantage.

“While a recession may only last a year or two, the impact of impulsive reactions to lower price might have a significant impact that could be difficult to overcome.”

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