Retracting your initial price increase to the market (5000% increase in one day) and then stepping back from it by offering a 10% discount to the number only has Martin Shkreli’s tone deafness become more and more apparent.
The NY Times article today shows protesters outside Martin Shkreli’s office labeling him the face of corporate greed. Last time I wrote about Martin Shkreli, I pointed out that ill-advised pricing increases that are tone deaf to the marketplace will only lead companies into trouble. Having a strategy that speaks to price increases and signals the market allows for a solid communication plan and a proactive view of how products and pricing effect the users of our products.
I have no inside view to what Martin Shkreli was thinking when he decided to raise his prices by 5000%, however, I can make the assumption that this was a “spreadsheet driven” decision that lives inside a vaccuum– a vaccuum that takes no other information into account when determining pricing. This is an over obvious example of why finance departments must not do the work of pricing without input and buy in from the marketing and brand experts in the company or in the marketplace.
I don’t know who will be Martin Shkreli’s crisis communication manager but whomever they are, they’ve got a big job out in front of them.