1% price increase has an average 12% impact on company profits
This fact is extremely strong and is often overlooked by decision-makers in organizations.
As the price increase does not carry costs and expenses (it is usually only reduced by taxes), it has a direct impact on profit. And since turnover is much higher than profit, the impact of the price is much greater than its original increase.
As an example, an 8.3% price increase above inflation in the company’s costs and expenses has the power to DOUBLE net profit.
And how to do this without losing sales? With the right pricing strategy powered by technology and data science!
*(simulation of the price impact on net profit made considering the average of B3’s Novo Mercado companies)
