Strategy & Corporate Performance
Pricing: Why AI is now the most important lever for increasing profits
Pricing is one of the most powerful but often underestimated levers for increasing profits and company value. Even small changes can have a big impact: a price increase of just 1% can boost operating profit by up to 11% with the same sales volume. In contrast, a price reduction of 5 percent requires a rather unrealistic sales increase of around 19 percent if profits are not to plummet. Artificial intelligence (AI) is now putting pricing back on the agenda for small and medium-sized businesses. In this interview, enomyc experts Jan Ulrik Holsten and Franz A. Wenzel explain how AI is changing pricing and what options this opens up for companies.