Nothing sharpens the pricing pencil like a recession, and a before-and-after look at MPI’s benchmarking toolkit makes that clear.
In early 2008 (several months before the recession), respondents were asked how per-unit pricing had changed in the previous 12 months. They were asked the same question in the most recent survey—at the recession’s tail end. Here’s how their answers compare: In 2008, 16.4% had cut prices—compared with 23.6% that had cut prices in the 12 recessionary months prior to the 2010 survey.
In 2008, just 15.0% of respondents reported that prices had remained the same during the previous year—compared with 33.8% of respondents in 2010.
As expected, price increases were harder to come by during the recession. In 2008, 68.6%—more than 2 out of 3—had raised prices within the previous year. Just 42.6% said the same in 2010.
For more statistical insights and important benchmarks for your operation, visit the MPI Global Benchmarking Toolkit for details and pricing for immediate access.
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