How to Pull It Off: Raising Prices When Others Have Given Their Customer the Power to Set Prices

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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, managers claim, “Our customers would never stand for that!” But through these shortsighted failures to manage pricing strategically, many suppliers have given customers the power to set prices.

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