Robert Tinterov, CEO and Co-Founder of Priceagent, which helps companies across sectors (from Electrolux to Ticketmaster) set prices thanks to feedback from consumers in near real-time, believes that pricing and even the language of pricing is sorely overlooked in business. He says:
"One major economic trend that is not going away any time soon is ongoing pricing shocks as a result of volatility in markets. Effective - and nuanced - pricing strategy is and always has been the single most powerful lever for profit. Today, this holds true more than ever.
"In a global economy rocked by tariffs and inflation, relying on historic information such as point of sale data is no longer fit for purpose. Companies need to prepare by ensuring pricing strategies respond to consumer demand in near real time.
"Yet the language of pricing is often poorly understood. For instance, too many business leaders fail to understand the implications of 'price walls' - points at which tiny tweaks can lead to a sharp drop off in demand - and what's known in pricing circles as 'willingness to pay'. As a result, they are leaving money on the table.
"Traditional assumptions around pricing are, very often, wrong: The reality is that you won't necessarily sell fewer units if you raise your prices. Even with AI and all the technologies we have at our fingertips today, too many make poor pricing decisions. In over 25 years as a CEO, and as a serial entrepreneur, I've seen first-hand how often pricing strategies are overlooked. This is also a key reason behind the failure of many, even well-funded, start-ups."