Posted 12/11/2023, 8:00:09 AM
Companies Embrace Dynamic Pricing to Sustain Record Margins Even as Demand Cools
- Companies are experimenting with pricing strategies more than before, changing prices more frequently to maximize profits
- Profit margins soared to record highs during the pandemic as companies raised prices to cover increasing costs
- Companies are focused on maintaining high margins even as demand cools, rather than competing on price to gain market share
- Firms realized during the pandemic that they can charge higher prices than previously thought without losing customers
- Pricing power may fade if the economy slows more meaningfully and more consumers become price sensitive