Managing Price in a Currency Crisis

In October 2018 I was engaged to help an international retailer set retail pricing policy for their Turkish subsidiary after the prolonged collapse of the Turkish Lira. In an unstable world it is critical to balance margin against local purchasing power and the competitive environment. My advice – move fast, keep a clear focus on how the world looks and feels to your customer, but remember – in the end, you have to have a margin to have a long term business model.

The Turkish Lira has suffered enormous devaluation versus the USD and the Euro, making business increasingly difficult for international brands who source goods from outside the Turkish economy.

Leave a Reply

Your email address will not be published. Required fields are marked *