The report highlights the importance of pricing in a downturn, as it can drive greater return than cost reductions. In a downturn, the seller's focus shifts towards margin management and value capture. Companies that pay appropriate attention to pricing can improve their margins on every transaction. The report suggests that a downturn can actually offer companies an opportunity to review their pricing strategy across different customer segments and determine the portfolio of products and services that drive profitability. While competitors succumb to customers' requests for continuing price decreases, a smart approach to pricing can actually make a company improve or protect profitability while providing customers with what they need.
