SBP 023: Inflation Is Here To Stay. Now what? With Dr. Hermann Simon

We are thrilled to have Dr. Hermann Simon return to our show. Dr. Simon has just published his newest book, "Beating Inflation: An Agile, Concrete, and Effective Corporate Guide." During our discussion, we explore various topics and tactics that organizations use to navigate these uncertain times. We delve into the significance of marketing and sales departments and, most importantly, how to keep your organization agile during this period. This conversation is timely, and we are confident you will enjoy it. Enjoy the show. ____________ Our Guest: Follow Prof. Hermann Simon: https://www.linkedin.com/in/simonhermann/recent-activity/posts/. Follow Simon-Kucher and Partners: https://www.linkedin.com/company/simon-kucher-&-partners/. Thinkers50 Profile: https://thinkers50.com/biographies/hermann-simon/ Beating Inflation: https://www.amazon.com/Beating-Inflation-Concrete-Effective-Corporate/dp/3031200926 ____________ The Sleeping Barber Podcast: Follow our updates here: https://www.linkedin.com/company/sleeping-barber/ Get in touch with our hosts: Marc Binkley: https://www.linkedin.com/in/marcbinkley/ Vassilis Douros: https://www.linkedin.com/in/vassilisdouros/ ____________ ____________ Timestamps 0:41 - Introduction 1:55 - Inflation is everywhere in the news. Hermann’s definition of inflation. 5:16 - Price goes up, and the value of your moneys goes down. But what is your actual buying power? 6:35 - Inflation has been steady for so many years. What is the effect on consumers? 8:27 - What are the main causes of inflation? Are there commonalities? 11:37 - Nothing fixes a high price like a high price. What is the driver for reduction? 13:34 - The implications of inflation. 16:10 - How problematic is it for companies to navigate this new economic climate? 18:20 - Communicating value during inflation 20:30 - How are professional services affected during inflation? 23:30 - Customers' willingness to pay for professional services. 25:20 - Profits = price x volume - costs and phantom profit. 27:10 - What is phantom profit? 29:45 - Price fluctuation, not just at the pumps. 33:00 - Should organizations manage prices like they do at gas pumps? 34:00 - Are there mechanisms that organizations should think about when increasing prices? 36:30 - Why is there a lag in salary increases? What should companies do? 38:35 - What is the time lag for salary increases? 40:00 - Should the organization increase pricing gradually? Or go all in? 41:19 - Maintaining pricing agility 42:30 - What are some pricing strategies people can follow in this climate? 48:00 - Can marketers take advantage of pricing power? 49:50 - What kind of messaging can marketers focus on driving pricing power? 52:00 - Bundling. The inflation silver bullet? 55:45 - What can the sales force do during inflationary periods? 57:14 - Hermann’s advice to CEOs 59:32 - Post-Pod discussion ____________ Where to Listen: Apple Podcasts: https://podcasts.apple.com/us/podcast/sleeping-barber-podcast/id1609811324 Spotify: https://open.spotify.com/show/4v0kaM350zEY7X2VBuyfrF Google Podcasts: https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy84MWVjYWJhNC9wb2RjYXN0L3Jzcw</