The search for profitable growth runs
up against stubborn pricing challenges
Only 4 out of 15 industries achieved their target growth rate in 2023
Difference between actual and expected revenue growth
Hardware
Medtech
Business-to-business insurance
Paper and packaging
Aerospace and defense
Construction and building materials
IT services
Telecom
Logistics
Chemicals
Machinery
Pharma and biopharma
Wholesale banking
Software
Agribusiness
1.1%
1.1%
0.4%
0.3%
0%
-0.2%
-0.4%
-0.5%
-0.5%
-0.6%
-0.8%
-0.9%
-0.9%
-0.9%
-1.7%
As costs rose in 2023, most companies took the hit and could not pass on higher costs to customers
Higher costs outweigh
price hikes
Notes: Percentage-point differences, 2022–2023;
bar lengths vary due to rounding
Difference between change in companies' list price and change in costs
COSTS OUTPACED PRICES
PRICES OUTPACED COSTS
Construction and building materials
Medical technology
Logistics
Chemicals
IT services
Computer hardware
Wholesale banking
Software
–1%
–1%
–2%
–2%
–2%
–3%
–3%
–4%
–5%
2%
2%
1%
1%
0%
1%
Paper and packaging
Telecommunications
Aerospace and defense
Agribusiness
Commercial insurance
Machinery
Note: Percentage-point differences, 2022–2023
Changing behavior
on the front line
Most companies plan to focus on list price hikes and packaging changes, while fewer are training front-line teams on other opportunities to boost margins
Pricing
Front line
Changing pricing models or packaging options
Increasing list price and anticipating similar rates of discounting
Tighter discount guidance/deployment
of tools
Training to better articulate value proposition, driving price premium
Respondents who think this is a key lever to improve pricing yield
57%
59%
58%
57%
60%
59%
60%
51%
48%
51%
53%
60%
52%
67%
Aerospace and defense
Agribusiness
Business-to-business insurance
Chemicals
Construction and building materials
Hardware
IT services
Machinery
Medtech
Paper and packaging
Software
Wholesale banking
Telecom
Logistics
57%
64%
50%
56%
64%
57%
67%
53%
66%
59%
45%
48%
68%
60%
Beyond list price and packaging tactics, the front line needs guidance and confidence to communicate value
and hold the line with customers
Source: Bain survey of 1,064 sales and marketing executives, January 2024
Note: Industries shown vary chart-to-chart as not every industry surveyed answered every question
61%
58%
38%
39%
63%
64%
37%
47%
56%
51%
55%
48%
50%
59%
27%
33%
38%
19%
29%
47%
36%
20%
28%
38%
32%
26%
24%
30%
Pricing
Front line
Changing pricing models or packaging options
Increasing list price and anticipating similar rates of discounting
Tighter discount guidance/deployment
of tools
Training to better articulate value proposition, driving price premium
Pricing
Front line
Changing pricing models or packaging options
Increasing list price and anticipating similar rates of discounting
Tighter discount guidance/deployment
of tools
Training to better articulate value proposition, driving price premium
Pricing
Front line
Changing pricing models or packaging options
Increasing list price and anticipating similar rates of discounting
Tighter discount guidance/deployment
of tools
Training to better articulate value proposition, driving price premium
