How to Pull It Off
Raising Prices, That Is, When Others Have Given Their Customers the Power to Set Prices
Across the Board
March 1999

Abstract:
As supplies of everything from key components to temporary services grow scarcer, an unusually large number of companies are trying to manage excess demand. In the past, there was a simple solution to such problems: raise the price. Today, that suggestion often elicits a look of terror and the sputtered response, "Our customers would never stand for that!" This is an ominous admission: that even when demand exceeds supply, managers can no longer manage their pricing. Through shortsighted failures to manage pricing strategically, many suppliers have given customers the power to set prices.

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