Increasing demand coupled with supply constraints is driving up manufacturing costs. These costs must be mitigated, absorbed or passed on to your customers. One of your main challenges right now revolves around how to increase margins and grow revenue while responding to supply chain challenges. And while you can’t control the volatility in market conditions, you can control your pricing strategy. Strong and sensible pricing strategies are the first pivot high tech companies should make to mitigate effects on profitability. 

If you’re an OEM, you must additionally face the problem of who pays the price for margin erosion. Regardless of how well you plan your price books, approximately 50% of all high tech deals are accomplished through special pricing. The challenge is finding the right balance between tailoring a price to meet a customer’s needs and protecting their business’s margin and profitability.