In a tariff-shaken market, pricing is your most powerful (and riskiest) supply chain lever

Introduction

In a volatile economy shaped by inflation, tariffs, supply chain disruption, and shifting consumer expectations, pricing has become one of the most powerful, and risky, decisions a brand can make.

The old model of setting prices based on historical sales or competitor benchmarks is no longer enough. There is a need to adjust in real time. This, in turn, can lead to more effective supply chain and inventory planning. Sadly, however, old-school pricing methods are quietly eroding profits.

From cost-based to value-based pricing

Tariff-driven uncertainty has shifted pricing power from cost-based models to value-based ones. In this volatile landscape, knowing what is referred to in pricing circles as customer “Willingness to Pay” (WTP) is key.

• Businesses must segment customers by value perception, not just price.
• Supply chains must now support agility over efficiency, with faster, flexible sourcing aligned to high-WTP segments.
• In a post-tariff world, understanding willingness to pay is a critical factor in business survival.

For a detail-rich look at spotting price walls and demand plateaus when tariffs hit, see our guide on how demand insights can reveal your best strategy.

Close the gap between demand signals and supply planning

Too often, ordering systems have a lag of a few weeks to “catch up” to demand signals. It’s critical to have effective supply chain planning and for teams to be working together, but you also need to understand the right price point. Many companies rely on backward-looking point-of-sale data to guide pricing decisions. But this is historic data, and consumer demand doesn’t follow clean lines; it jumps, stalls, and drops off at psychological thresholds. What’s more, few in the boardroom speak the language of pricing nor recognize those critical price walls and demand plateaus. Often, capturing real-world willingness to pay is the missing link, and it has a significant impact on supply chain and inventory planning.

These early demand shifts mirror the patterns we documented in What happens to pricing when consumer confidence falls.

Test pricing in real time, not rear view

So, as inflation, tariffs, and shifting habits continue to impact buyer behavior, relying on last quarter’s receipts isn’t enough. Companies must seek to test scenarios in near real time. Technologies can help to do much of the heavy lifting here, but the reality today is that while many spend millions optimizing creative, targeting, and media channels, they overlook the influence of pricing structure on consumer behavior.

Conclusion: pricing visibility builds resilience

At Priceagent, we believe pricing should reflect what customers are truly willing to pay, based on real-time input, not assumptions or outdated benchmarks. In a market defined by volatility, having this level of visibility gives brands the confidence to act, adapt, and grow.

Tariffs are here. Are your prices ready?

Turn tariffs into competitive advantage. See where demand holds, breaks, and revenue peaks before you move. Book your tariffs pricing review ➜ https://www.priceagent.com/landings/cost-shocks-tariffs

Further reading

Tariffs taking a toll? How demand insights can reveal your best strategy

What happens to pricing when consumer confidence falls

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