Market dynamics can change in a recession and different customers will respond in different ways. Understand how market dynamics could change and then resegment your customers to craft pricing and price communication strategies. You will also want to model scenarios for different competitive responses.

The 2nd excerpt from the Ibbaka eBook Pricing Strategy for 2023. The economic landscape has changed in important ways and these changes will shape pricing strategy in 2023. Inflation, higher interest rates, the threat of a recession, supply chain challenges, the lack of talent and competitor actions all need to be taken into account.

Market dynamics can change in a recession and a change in market dynamics can motivate a change in pricing strategy. Market dynamics differ by segment and customers can change segments with a recession. Prepare for 2023. Think through how a change in market dynamics could require changes to your pricing strategy.

Some are predicting a recession in 2023. With recessions, one often sees market consolidation. The number of potential customers, or the number of pricing units, or both, can decline. This has implications for both pricing and growth models. Leaders need to be prepared to respond.