Posted AT 6:00 AM EST on 22/09/08
Why prices need to rise more than you think
I've written earlier that failing to raise your prices to reflect the increases in your input costs is a de facto price cut. If you are the low-cost competitor, your weaker competitors could be grievously hurt if you hold prices constant or increase prices below the rate of increases in your input costs. If you are the high-cost competitor, your choice is to raise prices or to be ground down by the leader's ‘price cut.
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