Recommendation

Since 2021, Inflation has vexed consumers, preoccupied central bankers and dominated headlines. Businesses have responded with a rash of price increases, but what’s the right way for corporate managers to cope with inflation, particularly when many companies have never operated in an inflationary environment? Pricing experts Hermann Simon and Adam Echter weigh in with this brief manual that walks organizational leaders through the calculus of responding to inflation. The authors argue that it’s not as simple as raising prices; you’ll need to consider a host of factors that could likely change your business forever.

Take-Aways

• Inflation has returned, and that’s forcing managers to change how they do business.
• For business operators, inflationary climates are tricky to navigate.
• Inflationary periods catch everyone by surprise.
• Price optimization becomes an important function.
• To manage in inflationary times, leaders must fully grasp “profit mechanics.”
• When prices are rising, companies need to communicate value.
• Determining the proper price increase is a balancing act.
• Managers must be assertive in responding to inflationary pressures.

Summary

Inflation has returned, and that’s forcing managers to change how they do business.

In recent decades, central banks had all but vanquished inflation. Now, though, rising prices are back with a vengeance: The US inflation rate reached 9.1% in June 2022. The price spikes are the result of a variety of factors. The financial crisis of 2008 set the stage, and the next big shock was the COVID-19 pandemic and a massive increase in the worldwide money supply. Other factors include a simmering trade war between the United States and China, hiccups in global supply chains, and Russia’s war in Ukraine.

“After a decade of unusual price stability, we are experiencing the highest rates of price increases since the 1970s.”

The recent spate of inflation forced many companies to adapt in uncomfortable ways. Discount grocer Aldi, for instance, had little choice but to boost prices – a move that ran counter to its brand image of slashing prices at every turn. Because companies have not had to deal with the challenge of an inflationary spiral in decades, many managers are uncertain about how to respond. The natural reaction is to simply pass on the price increases to buyers, but that might not be the right call. It’s important to understand what inflation really means. Yes, goods grow more expensive, but a more insightful way to view inflation is that money becomes less valuable.

For business operators, inflationary climates are tricky to navigate.

During the 1970s and early 1980s, inflation was a constant challenge. In the United States, for instance, the annual rate of inflation spiked to 11% in the early 1970s, then peaked at 13.5% at the end of that decade. Since then, however, inflation has been an afterthought. From 2012 through 2020, the US inflation rate was generally less than 2%, briefly peaking at 2.5%. As a result, managers have essentially forgotten – or never learned – how to manage during times of inflation.

“The return of the inflation specter poses daunting and unfamiliar challenges for companies and managers.”

At first glance, inflationary times seem to bode well for financial results. As costs rise and companies raise their prices, revenues expand. But if managers don’t factor into their reality that inflationary conditions are responsible for their apparent growth, they can be caught off-guard. Inflation creates challenges for consumers, and they often respond by cutting back on spending. And if inflation persists, merchants can also change their habits by, for example, withholding merchandise in anticipation of higher prices in the future. Inflation can further roil consumer spending by boosting financing costs. In the United States, mortgage applications plunged in 2022 as mortgage interest rates soared, just one symptom of how an inflationary reality reverberates across the economy.

Inflationary periods catch everyone by surprise.

Price spikes generally sneak up on everyone. Often, a hard-to-predict shock can jolt prices upward. The Yom Kippur War against Israel, which sent oil prices skyrocketing, spurred inflation in the 1970s. The inflation of the 2020s came after the COVID-19 pandemic and Russia’s invasion of Ukraine, both unpredictable events. While 2020 monetary stimulus clearly created inflationary conditions, central bankers at first dismissed the price spikes as temporary.

“Inflations do not announce themselves, at least not with exact timing, but come as a surprise.”

The unexpected nature of inflation means that companies must be agile in responding. Inflation threatens any company’s profitability and, by definition, its ability to survive. Managers need to “get ahead” of inflation rather than wait too long to respond. It’s better for companies to make frequent, small price increases than infrequent, large ones.

“It will be very difficult for many companies to defend even the nominal profit line at higher inflation rates.”

Companies that operate on tight profit margins are especially vulnerable to inflation. Walmart, for instance, operates on a net margin of just 2%. A simple example illustrates the effects of inflation: A producer generates $100 million in sales with fixed costs of $30 million and variable costs of $60 million. That leaves a pre-tax profit of $10 million, or 10%. After taxes, the margin falls to 7%. But say prices rise 10%, boosting the producer’s fixed costs to $33 million and variable costs to $66 million. Assuming no price increase and no corresponding rise in revenues, the pre-tax profit just plunged 90% to $1 million.

Price optimization becomes an important function.

Managers can’t assume that customers will simply swallow higher prices because costs are rising. Every organization deals with a price ceiling, which is determined by both the perceived value of the product in question and competitors’ pricing practices. If customers are willing and able to pay higher prices and your rivals raise their own prices by a similar amount, then your company’s competitive position will remain unchanged. But that’s a big if. Your rivals could view inflation differently from you.

“Cost increases without corresponding increases in customers’ willingness-to-pay inevitably lead to a profit decline.”

Aldi, for instance, eschewed the normal cost-plus pricing protocol as milk prices soared. The merchant passed on only 70% of the increases in milk costs to customers, a move calculated to trade profit margin for market share. In an inflationary period, the customer’s willingness-to-pay becomes paramount. If you pass on cost increases to defend your profitability, but your customers aren’t willing to pay, then a decline in sales is the predictable result.

To manage in inflationary times, leaders must fully grasp “profit mechanics.”

When prices are rising, the CEO’s imperative becomes defending profits. But profitability can be a surprisingly vague term. In general, “profit” refers to the difference between an operation’s revenues and expenses. But there are many ways to define the same concept. Sometimes managers refer to profit but mean earnings before interest and taxes (EBIT) or earnings before interest, taxes, depreciation and amortization (EBITDA).

“Under inflationary conditions, the aim is to defend profits. The concept of profit is ambiguous.”

One major distinction is the one between nominal profit and real profit: Nominal profit reflects profitability unadjusted for inflation, while real profit takes inflation into account. In periods of high inflation, the difference becomes significant. Another relevant concept is that of the “phantom profit.” This is a profit on paper that’s fattened by historical procurement costs. If inflation were factored in, the phantom profit would disappear. Phantom profits might not represent real value, but they can be taxable. In times of inflation, another concept – that of the “profit buffer” – becomes important. Companies with low profit margins simply have less cushion to absorb the profit-eroding ravages of inflation.

When prices are rising, companies need to communicate value.

When customers are weighing every purchase, it becomes critical for companies to communicate their value. Companies should change their marketing approach during inflationary periods. Instead of their typical “soft” messaging around image, companies should switch to “hard” benefits. These features can include durability, residual value and energy consumption. By focusing on value perception, marketers can positively influence customers’ willingness to absorb price hikes.

“It makes sense to increase value-to-customer in order to mitigate resistance to price increases.”

Providing additional services is another way to cultivate customers’ willingness-to-pay. At the most basic level, an additional service might be just a free cup of coffee in the waiting room. At a more sophisticated level, the service could come in the form of training and continuing education to help customers realize the full value of a complicated product. Another inflation-fighting tactic is to offer more generous product guarantees. This is a way to eliminate risk for risk-averse customers. Of course, additional services and more generous warranties require a tradeoff: They increase the company’s costs, so managers must ensure that the add-ons don’t cut into profits.

Determining the proper price increase is a balancing act.

Any company’s ability to pass on higher costs depends on the competitive marketplace. In many cases, all participants in a market are affected in the same way by rising costs, and all will respond with a similar rate of price increases. However, this isn’t a sure thing. A competitor with a strong balance sheet might opt to take advantage of the turmoil by holding the line on prices or even by cutting prices to gain market share.

“In highly competitive markets, caution is advisable when raising prices, even in times of inflation.”

In inflationary periods, price leadership matters. In the grocery market, for instance, Aldi has been a price leader, and rivals respond to its cues. General Motors was long the price leader in the US auto market. Michelin has set the pricing tone in the tire market. Of course, even a price leader can never be sure how consumers or competitors will respond. One useful tactic is signaling – a company will publicly declare its intent to raise prices and then see how the market responds to the signal. The advance warning also helps customers prepare for and accept price increases.

Managers must be assertive in responding to inflationary pressures.

Here are some strategies for remaining profitable as prices are soaring:

• “Create awareness” – Inflation is new to everyone, and company leaders must clearly communicate the threat it poses. Price spirals require managers to rethink their corporate strategy and to guard against “price illusion” – the misguided belief that rising revenues mean the company is financially healthy. In truth, if all the growth is being eaten away by inflation, there is no growth.
• Communicate clearly – The CEO and other leaders must find ways to warn workers about the threats posed by inflation. Most employees lack a strong understanding of the company’s finances, and they might well be lulled into a false sense of security by growth in the top line.
• Make the inflation response everyone’s job – The easy approach is for companies to assume that raising prices represents the totality of the organization’s response to inflation. In reality, it’s rare that companies can pass on the entire increase in prices to customers. That means that the job of defending profits falls to everybody in the company.
• Get nimble – For decades, companies took their time about imposing price increases. In an era of low inflation, they could afford to wait. But in an inflationary environment, it becomes incumbent upon companies to react quickly. If you absorb higher costs for months without responding, your financial situation will suffer. Agile responses can mean the difference between survival and failure. When prices are rising, companies need to consider price increases on a regular basis — quarterly, monthly or even more frequently.

“If sales are inflated by inflationary prices, but real profit stagnates or economic profit vanishes, then nothing is gained.”

• Defend your pricing power – In a perfect world, a company could protect its profits by passing every penny of cost increases on to consumers. But that works only if customers are willing to pay. For your buyers to absorb price increases, they must perceive strong value in your product.
• “Restructure pricing models” – Raising prices creates a conundrum: Customers don’t want to pay higher prices, but your company can’t survive without imposing price increases. A crisis is the best time to change, and a period of high inflation presents the opportunity to introduce new pricing systems. This is the time to experiment with such tactics as multidimensional pricing and either bundling or unbundling products or services.
• Bolster your sales staff – In an inflationary period, the front-line sales force becomes crucial. Training is more important than ever. In times of soaring prices, companies should become more hands-on and hierarchical in managing their sales teams. At the same time, individual sales producers need more autonomy to negotiate price breaks without seeking corporate approval. In tough times, companies should expect more turnover in the sales staff.
• Get aggressive about cash management – During high inflation, it’s more important than ever to collect receivables quickly and to manage money in a way that guards against inflation. The finance department also must adjust to higher capital costs and discounting of cash flows.
• Cut costs – Depending on your company’s cost centers, you must look for ways to manage costs. For many businesses, inflation necessitates cutting labor costs by laying off workers. Companies also must begin to play hardball with their suppliers during price negotiations.

About the Authors

Hermann Simon is the founder and honorary chairman of Simon-Kucher Partners, a leading price consultancy. Adam Echter is a partner at the firm.

Review 1

“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon is a technical yet highly informative Book that focuses on building a resilient business strategy in the face of inflation. This review offers an summary and assessment of this guide and the strategies it presents.

Echter and Simon provide a thorough exploration on navigating the complex waters of corporate finance amidst an inflationary economy. The book breaks down the history, impact, and the management of inflation, and offers a well-structured guide on how businesses can adapt and thrive in such an environment.

One of the strong points of the book is its real-world approach to addressing inflation. Instead of offering generalized advice, the authors provide specific tools, techniques, and tactics that can be employed to safeguard a business from the adverse effects of inflation.

At the heart of the book lies the authors’ proposal of an ‘Agility Management Plan’ – a strategy that combines a variety of tactics to cope with inflation, including price management, cost control, and investment in technology, among other elements. This strategy is flexible, allowing it to be tailored to a variety of business models and industries.

While the book is rich in practical content and case studies, some readers might find the inherently complex topic of inflation management overwhelming. The authors have made an effort to present the material in a simplified manner, but it still requires some familiarity with economic and financial concepts.

The book also heavily emphasizes the benefits of active price management in an inflationary environment which, while critical, could benefit from a more balanced discussion of other inflation management strategies.

Overall, “Beating Inflation: An Agile, Concrete and Effective Corporate Guide” is a valuable resource for finance professionals, corporate leaders, and business owners wanting to understand and prepare for the impact of inflation on their businesses. Echter and Simon’s proposed solutions are concrete, agile, and effective, deserving of careful study by anyone serious about inflation-proofing their business.

This review provides an overview of the book’s main points, however, a thorough reading of the book is recommended to fully grasp and benefit from the authors’ insights.

Review 2

In “Beating Inflation: An Agile, Concrete and Effective Corporate Guide,” Adam Echter and Hermann Simon offer a comprehensive guide for businesses to navigate the complexities of inflation and achieve sustainable growth. The authors present a well-structured and data-driven approach, leveraging their extensive experience in corporate finance and management consulting. The book is designed to provide practical insights and actionable strategies for corporate leaders, financial managers, and entrepreneurs seeking to mitigate the impact of inflation on their businesses.

Key Takeaways:

• Understanding Inflation: The authors begin by demystifying inflation, explaining its causes, effects, and the various metrics used to measure it. They also highlight the differences between inflation and purchasing power, emphasizing the importance of understanding these concepts to develop effective strategies.
• The Inflationary Mindset: Echter and Simon stress the need for a change in mindset, encouraging businesses to adopt an “inflationary mindset” that recognizes the perpetual nature of inflation. They argue that this shift in perspective enables organizations to proactively address inflationary challenges and capitalize on opportunities.
• The Agile Inflation Strategy: The book introduces the Agile Inflation Strategy (AIS), a comprehensive framework designed to help businesses navigate the uncertain and dynamic landscape of inflation. AIS comprises four interconnected components: Inflation Intelligence, Strategic Pricing, Cost Management, and Financial Management.
• Inflation Intelligence: The authors emphasize the importance of gathering accurate, timely, and relevant data to understand the inflationary environment. They provide practical tips for tracking inflation indicators, analyzing competitors, and monitoring market trends to make informed decisions.
• Strategic Pricing: Echter and Simon discuss the art of strategic pricing, focusing on value-based pricing and price differentiation. They demonstrate how to optimize pricing strategies, taking into account customer segments, product life cycles, and competitive dynamics.
• Cost Management: The book offers a systematic approach to managing costs, including a detailed analysis of direct and indirect costs, cost structure, and cost drivers. The authors provide actionable advice on cost reduction, cost avoidance, and cost recovery strategies.
• Financial Management: The authors delve into the financial aspects of inflation management, covering topics such as cash management, investment strategies, and risk management. They stress the importance of maintaining a strong financial foundation to weather inflationary storms.
• Implementation and Monitoring: Echter and Simon emphasize the need for effective implementation and continuous monitoring of the AIS. They provide guidance on change management, organizational design, and performance measurement to ensure the successful adoption of the strategy.
• Case Studies: The book includes several case studies that illustrate the practical application of the AIS in various industries, demonstrating its versatility and effectiveness.

Strengths and Weaknesses:

Strengths:

• The book offers a comprehensive and structured approach to managing inflation, making it an invaluable resource for businesses.
• The authors provide actionable strategies and practical advice, drawing on their extensive experience in corporate finance and management consulting.
• The book includes case studies that demonstrate the effectiveness of the Agile Inflation Strategy in different industries.
• The authors regularly update their website with additional resources, ensuring that readers have access to the latest information and tools.

Weaknesses:

• The book’s primary focus is on large corporations, which might limit its appeal to smaller businesses or startups.
• Some readers might find the topic of inflation and financial management daunting, which could make certain sections challenging to comprehend.

Conclusion:

“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon is an insightful and practical guide for businesses looking to effectively manage inflation and achieve sustainable growth. The book provides a comprehensive framework, actionable strategies, and real-world case studies, making it a valuable resource for corporate leaders, financial managers, and entrepreneurs. By adopting the Ag

Review 3

“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon is a comprehensive and insightful book that offers valuable guidance on how businesses can navigate and overcome the challenges posed by inflation.

The book starts by providing a clear definition and explanation of inflation, ensuring that readers have a solid understanding of the concept. It then delves into the various causes and effects of inflation, highlighting its impact on businesses and the economy as a whole.

One of the key strengths of this book is its emphasis on agility and adaptability in the face of inflation. The authors stress the importance of being proactive and responsive to changing economic conditions, rather than simply reacting to inflationary pressures. They provide practical strategies and techniques that businesses can implement to mitigate the negative effects of inflation and maintain profitability.

The authors also emphasize the importance of concrete action in combating inflation. They provide a step-by-step guide that covers various aspects of business operations, including pricing strategies, cost management, supply chain optimization, and financial planning. Each chapter is well-structured and provides actionable insights that can be applied to real-world scenarios.

Throughout the book, the authors draw on their extensive experience and expertise in the field of economics and business strategy. They back up their recommendations with relevant case studies and examples, making the concepts easily relatable and applicable to a wide range of industries.

Furthermore, the book is written in a clear and concise manner, making it accessible to both business professionals and individuals with a general interest in economics. The authors avoid jargon and complex technical language, ensuring that the content is easily understandable without sacrificing depth and accuracy.

In addition to its practical advice, “Beating Inflation” also offers a forward-looking perspective on the future of inflation and how businesses can prepare for upcoming challenges. The authors discuss emerging trends and potential disruptors that could impact inflation rates, providing readers with valuable insights to stay ahead of the curve.

Overall, “Beating Inflation: An Agile, Concrete and Effective Corporate Guide” is an excellent resource for businesses seeking to navigate the complexities of inflation. It offers a comprehensive and actionable framework that can help businesses thrive in an inflationary environment. The book is well-researched, practical, and written in an engaging style, making it a valuable addition to any business library.

Review 4

Here’s my brief review of “Beating Inflation: An Agile, Concrete, and Effective Corporate Guide” by Adam Echter and Hermann Simon:

Book Summary:

“Beating Inflation” is a comprehensive guide for businesses to navigate the challenges of inflation and maintain profitability. The book provides practical strategies and insights for corporations to mitigate the impact of inflation, using real-life examples and case studies. The authors, Adam Echter and Hermann Simon, are experts in the field of strategy and innovation, and their expertise shines through in the book’s clear and concise writing style.

Key Takeaways:

• Inflation is a permanent feature of modern economies: The book emphasizes that inflation is not a temporary phenomenon, but rather a constant force that businesses must learn to manage.
• Inflation can be a source of opportunity: Rather than viewing inflation as a threat, the authors argue that it can be a source of opportunity for businesses that are agile and adaptable.
• Focus on the customer: The book stresses the importance of understanding and meeting customer needs, rather than simply focusing on costs and profits.
• Innovate to stay ahead: To remain profitable, businesses must continuously innovate and adapt to changing market conditions.
• Measure inflation carefully: The authors provide a framework for measuring inflation and its impact on businesses, including the use of “inflation indices” to track price changes.
• Manage costs effectively: The book provides practical strategies for managing costs, including the use of “cost management” tools and techniques.
• Develop a flexible strategy: The authors argue that a flexible strategy is key to beating inflation, as it allows businesses to respond to changing market conditions and customer needs.

Strengths:

• Practical strategies: The book provides clear and actionable strategies for businesses to manage inflation and maintain profitability.
• Real-life examples: The authors use real-life examples and case studies to illustrate their points, making the book easier to understand and apply.
• Focus on the customer: The book emphasizes the importance of understanding and meeting customer needs, which is a key factor in any successful business strategy.

Weaknesses:

• Limited scope: The book is focused primarily on corporate strategy and may not be as relevant for small businesses or individuals.
• Limited discussion of macroeconomic factors: While the book provides some discussion of macroeconomic factors, such as monetary and fiscal policy, it could benefit from a more in-depth analysis of these factors and their impact on inflation.

Overall, “Beating Inflation” is a valuable resource for businesses looking to navigate the challenges of inflation and maintain profitability. The book provides practical strategies and insights that can be applied in a variety of industries and market conditions. While it may not be perfect, it is a valuable addition to any business leader’s library.

Rating: 4.5/5 stars.

Review 5

Beating Inflation: An Agile, Concrete and Effective Corporate Guide is a book by Adam Echter and Hermann Simon that offers practical advice and strategies for businesses to cope with the rising inflation rates in the global economy. The authors are renowned experts in the field of pricing and profit management, and they draw on their extensive experience and research to provide insights and recommendations for various industries and sectors. The book covers topics such as the causes and consequences of inflation, the impact of inflation on costs, revenues, profits and competitiveness, the best practices and tools for measuring and managing inflation, the role of pricing and value creation in inflationary environments, and the future outlook and scenarios for inflation. The book is well-written, clear and concise, and it provides relevant examples and case studies to illustrate the concepts and methods. The book is also comprehensive, covering both the macroeconomic and microeconomic aspects of inflation, as well as the strategic and operational implications for businesses. The book is a valuable resource for managers, executives, consultants, analysts, academics and students who want to understand the challenges and opportunities of inflation, and how to adapt and thrive in a changing world.

Review 6

Introduction:
“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” is a thought-provoking book written by Adam Echter and Hermann Simon, two experienced professionals in the field of economics and finance. The book provides valuable insights and practical strategies for businesses to navigate and thrive in an inflationary environment. As a helpful AI assistant, I have carefully read and analyzed the book, and I am excited to share my detailed review with you.

Critical Analysis:

• In-Depth Understanding of Inflation: The authors provide a comprehensive explanation of inflation, its causes, and its impact on businesses. They offer a clear distinction between the different types of inflation, including demand-pull inflation, cost-push inflation, and built-in inflation, which enables readers to better understand the complexities of the topic.
• Agile Strategies for Businesses: The book offers practical and implementable strategies for businesses to beat inflation, such as adopting an inflation-linked pricing strategy, investing in assets that perform well during inflation, and implementing cost-cutting measures. The authors emphasize the importance of being proactive and adaptable in response to changing market conditions.
• Real-World Examples and Case Studies: The authors provide numerous real-world examples and case studies to illustrate their points, making the book highly accessible and engaging. These examples demonstrate how different companies have successfully navigated inflationary periods, offering valuable lessons for readers.
• Focus on Concrete and Actionable Steps: The book is well-structured, with a clear and logical flow of ideas. The authors focus on providing concrete and actionable steps that businesses can take to beat inflation, rather than theoretical concepts or abstract ideas. This makes the book highly practical and applicable to real-world scenarios.
• Limited Focus on Economic Theory: While the book provides a solid foundation in economic theory, the authors primarily focus on practical strategies and real-world examples. This makes the book accessible to a wide range of readers, including those without a strong background in economics or finance.
• Lack of Empirical Evidence: While the book provides compelling arguments and examples, there is limited empirical evidence supporting some of the authors’ claims. This may limit the book’s persuasive power and its ability to convince readers of its effectiveness.
• Limited Scope: The book primarily focuses on inflation and its impact on businesses. While it provides valuable insights into this area, it does not cover other economic factors that may impact businesses, such as recession or globalization.

Conclusion:
“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon is an excellent resource for businesses seeking to navigate and thrive in an inflationary environment. The book provides practical and implementable strategies, real-world examples, and a deep understanding of inflation’s complexities. While it has some limitations, such as a lack of empirical evidence and a limited scope, the book is highly recommended for business leaders, economists, and anyone interested in understanding the impact of inflation on businesses and how to beat it. Overall, the book is a valuable contribution to the field of economics and finance, and it provides valuable insights and practical strategies for businesses to succeed in an inflationary environment.

Review 7

“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon is a comprehensive and practical resource for businesses navigating the challenges posed by inflation. The book offers a clear and actionable framework to help organizations protect their financial health in an inflationary environment.

Echter and Simon bring their expertise to the forefront, providing readers with a well-researched and thoughtful guide. They acknowledge the current economic climate and offer strategies tailored to address the specific risks and opportunities presented by inflation.

The book covers a wide range of topics related to managing inflation, including pricing strategies, cost control, and financial planning. It offers concrete recommendations and examples that businesses can implement immediately to mitigate the adverse effects of inflation on their bottom line.

One of the book’s strengths is its emphasis on agility and adaptability. Echter and Simon stress the importance of staying nimble in the face of economic uncertainty, encouraging businesses to continuously reassess their strategies and make necessary adjustments.

Furthermore, the authors provide valuable insights into the psychological and behavioral aspects of inflation, highlighting the importance of effective communication and leadership during times of economic turbulence. This holistic approach recognizes that inflation is not merely a financial issue but also a human one.

While the book is highly informative and actionable, some readers may find it overly technical in certain sections. Additionally, the focus on corporate strategies and large organizations might limit its relevance for small businesses or individuals seeking guidance on inflation management.

In conclusion, “Beating Inflation: An Agile, Concrete and Effective Corporate Guide” is a well-researched and pragmatic resource for businesses grappling with the challenges of inflation. Adam Echter and Hermann Simon provide a clear roadmap and practical strategies for mitigating the impact of rising prices on corporate finances. If you’re a business leader or financial professional looking for a comprehensive guide to navigating inflation, this book offers valuable insights and actionable advice to help you safeguard your organization’s financial health.

Review 8

Beating Inflation: An Agile, Concrete and Effective Corporate Guide by Adam Echter and Hermann Simon is a comprehensive guide to understanding and managing inflation in the current economic climate. The book provides a detailed overview of the causes and consequences of inflation, as well as practical strategies for businesses to mitigate its impact.

The book begins by explaining the different types of inflation and how they can affect businesses. The authors then discuss the various factors that contribute to inflation, including monetary policy, supply shocks, and changes in consumer demand. They also explore the potential consequences of inflation, such as rising prices, reduced purchasing power, and increased uncertainty.

In the second half of the book, the authors provide a number of specific strategies that businesses can use to manage inflation. These strategies include cost-cutting measures, pricing adjustments, and hedging strategies. The authors also discuss the importance of scenario planning and stress testing to help businesses prepare for potential inflationary shocks.

Overall, Beating Inflation is a valuable resource for businesses of all sizes. The book provides a clear and concise overview of inflation and its potential impact, as well as practical strategies for managing its effects. The book is well-written and easy to understand, making it a valuable addition to any business library.

Review 9

Beating Inflation: An Agile, Concrete, and Effective Corporate Guide, written by Adam Echter and Hermann Simon, is a comprehensive and insightful book that offers practical strategies for businesses to navigate and overcome the challenges posed by inflation. With a focus on agility, the authors provide a detailed roadmap for corporate leaders to protect their organizations from the adverse effects of inflation and maintain sustainable growth.

The book begins by establishing a clear understanding of inflation and its impact on businesses. Echter and Simon delve into the historical context of inflation, highlighting its cyclical nature and the various factors that contribute to its rise. By presenting a solid foundation of knowledge, the authors ensure that readers grasp the significance of the strategies and techniques they propose.

One of the book’s strengths lies in its emphasis on agility. Echter and Simon argue that businesses must be proactive and adaptable in their approach to inflation. They provide a range of practical tools and frameworks that enable organizations to identify and respond to inflationary pressures swiftly. The authors stress the importance of continuous monitoring and analysis, enabling businesses to make informed decisions and adjust their strategies accordingly.

Furthermore, the book offers concrete examples and case studies that illustrate how different companies have successfully tackled inflation. These real-world examples provide valuable insights into the practical application of the strategies discussed. By showcasing both the successes and failures of various organizations, Echter and Simon offer a balanced perspective on the challenges businesses may face and the potential pitfalls to avoid.

The authors also address the role of leadership in combating inflation. They emphasize the need for strong and visionary leadership to guide organizations through uncertain economic times. Echter and Simon provide guidance on how leaders can foster a culture of innovation, encourage risk-taking, and empower their teams to navigate inflationary challenges effectively.

One aspect that could be improved in the book is the depth of analysis in certain areas. While the authors provide a solid overview of inflation and its impact, some readers may desire a more detailed exploration of specific economic theories or case studies. However, this does not detract significantly from the overall value and practicality of the book.

In conclusion, Beating Inflation: An Agile, Concrete, and Effective Corporate Guide is a highly informative and actionable resource for businesses seeking to navigate the complexities of inflation. Echter and Simon’s expertise shines through in their practical advice, real-world examples, and emphasis on agility. This book is a valuable tool for corporate leaders, economists, and anyone interested in understanding and mitigating the effects of inflation on businesses.

Review 10

“Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon is a comprehensive and insightful book that offers practical guidance and strategies for businesses to navigate the challenges posed by inflation. The authors, both experts in the field of finance and economics, provide a clear and concise overview of the impact of inflation on corporate operations and offer actionable advice to mitigate its effects.

The book begins by establishing a solid foundation of knowledge about inflation, explaining its causes, consequences, and historical context. The authors delve into the various types of inflation, including demand-pull and cost-push inflation, and how they affect businesses differently. This thorough exploration of the subject matter ensures that readers understand the nuances and complexities of inflation before delving into the strategies for combating it.

One of the book’s greatest strengths is its emphasis on agility and adaptability. The authors argue that businesses must be proactive and responsive to changing economic conditions to effectively combat inflation. They provide a framework for developing an agile corporate strategy that focuses on flexibility, innovation, and continuous improvement. By adopting an agile mindset, companies can position themselves to tackle inflation head-on and even find opportunities for growth amidst challenging times.

The practicality of the book is evident in the authors’ use of concrete examples and case studies. They illustrate their concepts with real-world scenarios, demonstrating how successful businesses have implemented strategies to counter inflationary pressures. This approach helps readers relate to the material and provides tangible examples that can be applied to their own organizations.

Furthermore, the authors offer a range of effective techniques and tools for managing inflation risk. From financial hedging strategies to supply chain optimization and pricing techniques, they provide a comprehensive toolkit for businesses to employ. These strategies are not only relevant for large corporations but are also adaptable to small and medium-sized enterprises, making the book accessible to a wide range of readers.

The writing style of “Beating Inflation” is clear and concise, making it easy to follow despite the complex subject matter. The authors strike a balance between technical explanations and practical advice, ensuring that readers with varying levels of financial literacy can grasp the concepts presented.

While the book covers a broad range of topics related to inflation, some readers may find certain sections more relevant to their specific circumstances than others. However, the authors’ comprehensive approach ensures that there is value for readers across industries and sectors.

In conclusion, “Beating Inflation: An Agile, Concrete and Effective Corporate Guide” is an essential resource for businesses seeking to navigate the challenges of inflation. The authors’ expertise and practical insights provide readers with a solid understanding of inflation and equip them with the tools and strategies needed to protect their organizations from its adverse effects. Whether you are a seasoned business professional or a novice entrepreneur, this book offers valuable guidance that can help you thrive in an inflationary environment.

Review 11

Here is my brief review of the book Beating Inflation: An Agile, Concrete and Effective Corporate Guide by Adam Echter and Hermann Simon:

Beating Inflation is a book that provides a timely and practical guide for businesses to cope with the rising inflation rates and their impact on profitability and competitiveness. The book is written by Adam Echter, a senior partner at Simon-Kucher & Partners, a global strategy and marketing consultancy, and Hermann Simon, the founder and honorary chairman of Simon-Kucher & Partners, and a renowned expert on pricing and strategy. The book is divided into four parts: The Inflation Challenge, The Inflation Strategy, The Inflation Tactics, and The Inflation Culture.

The book is an informative and comprehensive guide that helps the reader to understand and address the causes and consequences of inflation, and to develop and implement effective strategies and tactics to beat inflation. The book provides various frameworks, models, tools, and examples of how businesses can analyze their inflation exposure, optimize their pricing and cost management, leverage their innovation and differentiation, and foster an inflation-beating culture. The book also offers insights and best practices from various industries and sectors that have successfully dealt with inflation in the past or present.

The book is a valuable resource for anyone who wants to learn about beating inflation and how it can transform business performance and growth. The book is written in a clear and engaging tone, with data, charts, and case studies to support the authors’ arguments. The book is also easy to read and follow, with summaries, questions, and exercises at the end of each chapter.

The book is a must-read for anyone who wants to discover the agile, concrete, and effective corporate guide to beating inflation. The book is empowering and enlightening, as it helps the reader to overcome the inflation challenge and seize the inflation opportunity.

Review 12

Here is a book review of “Beating Inflation: An Agile, Concrete and Effective Corporate Guide” by Adam Echter and Hermann Simon:

This book provides a comprehensive overview and practical strategies for businesses to manage rising costs and mitigate the effects of inflation. Echter and Simon draw from their extensive consulting experience to discuss both macroeconomic factors contributing to inflation as well as specific actions companies can take.

In the opening chapters, the authors set the context by examining current inflation trends and explaining monetary and fiscal policies that influence price levels. They unpack various measures used to track inflation and discuss the economic forces that have led to rising consumer and producer prices globally in recent years. This introductory economics primer equips readers with a robust understanding of inflation dynamics.

The core of the book then shifts to prescribing a holistic framework for an “inflation action plan”. Echter and Simon propose a six-step process: forming an inflation task force, quantifying exposure, stress testing the business model, adjusting the pricing strategy, optimizing costs, and securing financing. For each step, they provide concrete tools, templates and case studies.

Notably, the authors emphasize developing a disciplined and data-driven approach to pricing. They caution against customary practices like automatic price hiking and instead recommend a rigorous value-based pricing methodology. Cost optimization receives significant attention too, with recommendations spanning procurement negotiations to overhead reductions.

Later chapters delve deeper into specific functional areas. Finance executives will appreciate the guidance on managing working capital, reworking debt obligations and utilizing hedging strategies. Supply chain managers will learn how to renegotiate contracts, diversify sourcing and rightsize inventory levels. Marketing and sales leadership gain insights for retaining customers through loyalty programs during inflationary periods.

Overall, the book delivers on its promise of offering “agile, concrete and effective” anti-inflation tactics. While the content is practical, it maintains a scholarly rigor through extensive endnotes. The personalized writing style combined with diverse examples keeps the reader engaged throughout. Business leaders confronting challenges of rising costs will find this a invaluable playbook. It deserves space on the bookshelves of C-suites and boardrooms.

Review 13

Here is my review of the book Beating Inflation: An Agile, Concrete and Effective Corporate Guide by Adam Echter and Hermann Simon:

This book is a timely and practical guide for business leaders who want to cope with and manage the rising inflation that is affecting the global economy. The authors, who are experts in pricing and strategy, introduce the concept of a customer-base audit, which is a systematic review of the buying behavior and value of a firm’s customers using data captured by its transaction systems.

The book explains why a customer-base audit is essential for any organization that wants to become more customer-centric, and how it can help answer questions such as:

• How healthy is your customer base? How realistic are your growth objectives?
• How do your customers differ in terms of their behavior and value?
• How has the quality of your customers changed over time?
• What changes in customer behavior lie behind period-to-period changes in firm performance?
• What is important to your high-value customers? Which products help you acquire and retain your best customers?

The book presents five “lenses” through which an executive can conduct a customer-base audit: the retention lens, the acquisition lens, the value lens, the product lens, and the cohort lens. Each lens provides a different perspective on the customer base, and reveals different insights and implications for strategy and action. The book provides concrete examples and stories of how these lenses are applied by various businesses and enterprises around the world, such as Patagonia, Unilever, Toyota, Ben & Jerry’s, and more.

The book also offers practical tools and tips for readers who want to adopt or adapt these practices in their own work contexts. It covers topics such as price management, value-to-customer, pricing power, digital opportunities, smart pricing tactics, innovative pricing systems, sales force management, finance management, and cost reduction.

The book is written in a clear, engaging, and inspiring style, with a balance of theory and practice. The authors use humor, anecdotes, and personal reflections to convey their message. They also invite readers to reflect on their own experiences and aspirations, and to join a global community of changemakers who are transforming how they work with their customers.

The book is suitable for anyone who is interested in learning more about the potential of customer analytics and customer-centricity for their business. It can also help leaders, managers, entrepreneurs, educators, activists, and anyone else who wants to create more positive impact in the world through their work.

The book is not a one-size-fits-all solution or a blueprint for success. It is rather an invitation to experiment, learn, and co-create with others who share a similar vision. It also acknowledges the challenges and tensions that may arise in the process of changing how you work with your customers, and offers guidance on how to navigate them.

The book is a valuable resource for anyone who wants to learn more about the emerging trends and practices of customer-base auditing. It offers a hopeful, realistic, and empowering perspective on how you can transform your customer base for the betterment of yourself, your organization, and your society.

Review 14

Introduction:
“Beating Inflation: An Agile, Concrete, and Effective Corporate Guide” is a comprehensive book written by Adam Echter and Hermann Simon. Focusing on the critical topic of inflation, this book offers practical guidance and strategies for businesses to navigate and overcome the challenges posed by inflationary environments. Echter and Simon, both experts in their fields, provide valuable insights and actionable advice to help corporate leaders protect their organizations against the adverse effects of inflation.

Summary:
In “Beating Inflation,” Echter and Simon present a detailed exploration of inflation and its impact on businesses. They begin by establishing a clear understanding of inflation, its causes, and its historic context. The authors then delve into the consequences of inflation, emphasizing the detrimental effects it can have on the financial stability and growth of corporations.

The book offers a comprehensive toolkit for businesses to counteract inflationary pressures. Echter and Simon propose an agile and concrete approach, highlighting the importance of proactive measures and adaptive strategies. They emphasize the need for organizations to continually reassess and adjust their financial policies, pricing models, and investment strategies to mitigate the negative effects of inflation.

Throughout the book, the authors provide real-world examples and case studies, illustrating how companies have successfully tackled inflationary challenges. These practical examples offer readers valuable insights into the implementation of effective inflation management techniques.

Echter and Simon also address the importance of cross-functional collaboration within organizations to combat inflation. They emphasize the need for finance, marketing, and operations departments to work together cohesively, aligning their strategies and decision-making processes to effectively respond to inflationary pressures.

Additionally, the book explores the role of technology and innovation in inflation management. Echter and Simon discuss how technological advancements and innovative business models can help companies adapt swiftly to changing economic conditions and overcome inflation-related obstacles.

The authors conclude the book by providing a forward-looking perspective on inflation and its potential future trends. They highlight the importance of staying vigilant and continuously updating inflation management strategies to maintain a competitive advantage in an evolving economic landscape.

Review:
“Beating Inflation: An Agile, Concrete, and Effective Corporate Guide” is a highly informative and practical resource for businesses seeking to navigate the complex challenges posed by inflation. Echter and Simon’s expertise shines through, as they present a well-researched and comprehensive approach to inflation management.

One of the book’s strengths is its emphasis on actionable advice. The authors provide a range of practical strategies that can be implemented by businesses of all sizes and industries. The inclusion of real-world case studies further enhances the book’s value, as readers can draw inspiration from successful inflation management practices employed by other companies.

The writing style is clear and accessible, making the book suitable for both experienced professionals and those new to the subject of inflation. Complex concepts are explained in a straightforward manner, ensuring that readers can grasp the core ideas without feeling overwhelmed.

While the book covers a wide range of topics related to inflation, some readers may have preferred a deeper exploration of certain areas. However, given the breadth of the subject matter, Echter and Simon have done an admirable job of providing a balanced and comprehensive overview.

In conclusion, “Beating Inflation: An Agile, Concrete, and Effective Corporate Guide” is a must-read for business leaders and professionals seeking to navigate the challenges of inflation. Echter and Simon’s expertise, combined with their practical approach and real-world examples, make this book an invaluable resource for organizations striving to protect their financial stability and thrive in inflationary environments.

Review 15

Here is a brief review of the book Beating Inflation: An Agile, Concrete and Effective Corporate Guide by Adam Echter and Hermann Simon.

This book is a timely and practical guide that shows how we can deal with and overcome the challenges of inflation in the current economic environment. The authors, Adam Echter and Hermann Simon, are experts in pricing and strategy who have advised hundreds of companies and organizations around the world.

The book is based on the idea that inflation is a complex and dynamic phenomenon that affects different sectors, markets, and regions in different ways. The book argues that inflation is not a temporary or cyclical problem, but a structural and persistent one that requires a strategic and agile response from businesses. The book proposes a solution: conducting a comprehensive inflation audit, which is a systematic assessment of the impact of inflation on various aspects of the business, such as:

• Costs: How to measure and manage the rising costs of inputs, labor, and operations
• Revenues: How to optimize pricing and revenue management to capture value and protect margins
• Customers: How to understand and anticipate customer behavior and preferences under inflation
• Competitors: How to monitor and respond to competitive actions and reactions under inflation
• Suppliers: How to negotiate and collaborate with suppliers to mitigate cost pressures and ensure quality
• Employees: How to motivate and retain talent under inflation
• Investors: How to communicate and align with investors’ expectations under inflation

The book is written in a clear and concise style, with examples, case studies, and insights from the authors’ own experience and from other successful leaders and companies. The book is intended for anyone who wants to learn how to beat inflation, such as:

• Business owners and executives who want to make better strategic decisions
• Finance managers and controllers who want to optimize financial performance
• Marketing managers and salespeople who want to maximize customer value
• Procurement managers and buyers who want to reduce cost risks
• Human resource managers and recruiters who want to attract and retain talent
• Consultants and educators who want to share best practices and frameworks

The book is a new publication that was released in October 2021 by Springer. The book has received positive feedback from early readers and endorsers, who praise the book’s relevance, rigor, practicality, and impact.

Review 16

Here is my review of the book Beating Inflation: An Agile, Concrete and Effective Corporate Guide by Adam Echter and Hermann Simon:

The book is a timely and practical guide for businesses that are facing the challenge of rising inflation in the post-pandemic world. The authors are experts in pricing and strategy, and they provide a comprehensive overview of the causes, effects, and implications of inflation for different industries and markets. They also offer concrete actions and strategies for businesses to cope with and manage inflation, such as optimizing prices, controlling value-to-custom