For companies, setting a price strategy is essential amid tariff uncertainties

Setting a pricing strategy is regularly regarded as a challenge, but in today’s world of unpredictable tariffs, global realignments and recession fears, it’s an even greater balancing act, Harvard Business Review writes. 

A manager’s choice is often presented as binary: Do you raise prices and risk losing customers? Or do you absorb costs and erode margins?

Customers consider a third option: They can choose to buy elsewhere. 

Managers making pricing decisions need to understand what their competitors are doing and if they do raise prices, explain to customers why. HBR suggests managers be transparent with customers, such as listing the exact tariff amount in your price, as Volkswagen has done.

Other options managers can consider: 

• Offering deals on high-volume purchases. 
• Design discounted bundles, with tariffed products being bundled with non-tariffed products and services. 
• Fix or cap prices for long-term commitments. 

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