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Are You Prepared to Capture Price Increases?

With all of the schizophrenic chatter these days surrounding economic policy and international trade, it’s impossible to know for sure what will ultimately happen and how it will impact our businesses. In this kind of environment, it pays to think through the potential ramifications and be prepared for any eventuality.

One of the more challenging scenarios is around rising input costs.

Understandably, most are filled with a sense of dread when the specter of material cost inflation is looming large. After all, for far too many companies this situation has historically led to a massive margin “squeeze” as rising input costs have outpaced their ability…or willingness…to pass price increases through to their customers.

And based on these past experiences, companies might just throw up their hands, resign themselves to capturing or passing on just a fraction of the cost increases, and simply prepare to hunker down and take the margin hit.

But it doesn’t have to be this way. The margin squeeze is not at all inevitable. Quite the contrary, with the right preparation and a thoughtful approach, rising input costs can actually provide an excellent opportunity to increase your margins.

As explored and explained in the on-demand training webinar, “Survival Strategies for Raising Prices”, there are many proven ways to turn material cost inflation to your advantage, while at the same time reducing the organization pain and angst that are typically associated with executing price increases.

In times of uncertainty, knowledge and preparation are critically important. But the right attitude can make a tremendous difference.

Some will only see the downsides of rising input costs. They’ll assume that the past always repeats. They’ll model the squeeze, lower internal expectations, and prepare everyone to do more with less. And of course, they’ll end up getting exactly what they anticipated and planned for.

Others, however, will see the same situation as an opportunity. They’ll know that nothing is inevitable. They’ll get the right processes in place. They’ll plan to take a surgical approach. They’ll strive to capture the full cost increase…plus a bit more. And they, too, will end up getting exactly what they planned for.

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