Inflation Isn’t Your Real Problem. Pricing Inertia Is
Retailers are feeling the squeeze. Costs are up across the board, from labor and materials to logistics, and with inflation lingering in many global markets (nearly 6 percent worldwide), the instinct is to brace for impact. But while inflation may be putting pressure on margins, it’s not the underlying issue. The real problem is how retailers respond — or, more accurately, how they don’t.
Too many businesses are stuck in static pricing cycles. They adjust prices once a year, maybe twice, layering a margin on top of costs and hoping the market cooperates. But in today’s dynamic retail environment, that approach is outdated at best — and dangerous at worst. Pricing inertia (i.e., the tendency to delay, defer or avoid pricing changes) is what’s really putting brands at risk.
The reality is that many retailers are leaving money on the table. They’re operating on gut feel, legacy price lists or internal comfort zones, rather than listening to the people who actually determine success: their customers.
So what should they do instead? Answering this question starts with reframing how we think about pricing altogether.
1. Stop pricing from the inside out.
One of the most common missteps is pricing based purely on internal metrics such as cost of goods sold, margin targets or competitor benchmarks. These inputs matter, but they’re only part of the equation. What’s often missing is the customer’s view.
Instead of assuming what your target market will tolerate, retailers need to uncover what customers actually value — and what they’re willing to pay for it. Sometimes, customers are more willing to pay a premium than expected, especially when that price aligns with convenience, ethical sourcing, innovation or status. The key is not to guess, but to ask and observe.
2. Identify your price walls and plateaus.
Every product has a price wall — the point at which a higher price triggers a steep drop in demand. Likewise, many products sit on plateaus, where a price increase has no impact on unit volume at all. Identifying these thresholds can help brands avoid underpricing while minimizing risk.
For instance, when internal fears drive pricing decisions, companies often undervalue premium features. In contrast, data from consumer studies can reveal that loyal customers are more value-sensitive than price-sensitive. If the product delivers, they stay. Pricing to the true ceiling of perceived value — not the floor of internal caution — can unlock new margin potential.
3. Test before you act.
Retailers wouldn’t launch a new marketing campaign without testing creative or targeting. Pricing deserves the same discipline. Before making a change, test different price points with real customers to understand how demand responds.
This is especially valuable when entering new markets, launching new SKUs or adjusting for external pressures like tariffs or currency shifts. Testing allows brands to explore elasticity across customer segments, understand trade-offs and prevent backlash from misaligned price moves.
4. Segment your pricing strategy — not just your marketing.
Marketing personalization is now table stakes, but pricing often lags behind. Yet different customer segments assign different value to the same product. A commuter and an outdoor enthusiast may both purchase the same jacket — but for entirely different reasons. One may value weather resistance; the other, aesthetic versatility. Their willingness to pay will reflect those differences.
Retailers can tailor pricing strategies much like messaging. This could include product tiering, dynamic bundling, channel-specific pricing or loyalty-based discounts. The critical shift is moving from “one price fits all” to “one value proposition per segment.”
5. Make pricing an ongoing conversation.
In times of uncertainty — tariff changes, inflation spikes, shifting consumer sentiment — retailers must avoid treating pricing as a set-it-and-forget-it exercise. Instead:
- Build feedback loops into the pricing process.
- Track how customer perceptions evolve.
- Measure willingness to pay over time and across regions.
- Revisit assumptions regularly.
- Assign ownership of pricing based on transparency and customer value.
Even small adjustments, when grounded in customer insight, can prevent erosion and preserve competitiveness. More importantly, they allow for robust analysis and accurate data — including insights from customers themselves — so retailers can move with confidence rather than hesitancy.
Retailers that thrive in this economy will be those who treat pricing as a dynamic, strategic lever rather than a back-office function or a once-a-year update. They’ll replace assumptions with evidence, fear with insight and hesitation with agility.
Inflation and tariffs may be beyond a brand’s control. But pricing inertia is not. The real risk isn’t charging too much — it’s charging too little, and acting too slowly, for too long.
The opportunity lies in listening: to customers, to segments, to signals in the market. It’s time to stop pricing based on the past and start pricing for what’s happening now — and what’s coming next.
Robert Tinterov is the CEO and founder of Priceagent International AB.

Robert Tinterov is the CEO and Founder of Priceagent International AB. Robert has launched one of the most successful digital audio and video solutions companies in the Nordics, growing sales from 0 to 50 million USD in just four years. He was part of the internet group Spray, where he played a key role in scaling media businesses, and has held senior positions at multi-million-dollar companies across Europe and the US. In addition to his executive roles, Robert is a well-regarded speaker and regularly delivers talks and training sessions on growth and pricing strategy. www.priceagent.com