In today's episode, we are going to discuss the importance of value-based pricing during inflation.   In today's episode, we are, I suppose, going to address the big elephant in the room, which is massive cost increases and massive inflation. On a scale, I think people thought we would never see it again. I read this morning that inflation is at a 30 year high. In some countries, it is somewhere between 6% and 12%. That was even before this entire Ukrainian War and petrol prices, fuel prices, and all that sort of stuff. So it is a massive cost increase. In today's episode, we want to say with cost increases why to a large extent, value-based pricing is more important than ever. If you are a cost-plus business, it may seem sensible at this point in time. But really, you are going to face even more problems than usual. I think that's sort of right. I mean, in times of inflation, you need to understand the value of your product portfolio and the value of your business. How do customers perceive that value? How interested are they? Do they understand the value that they're offering? What's the level of education that's required to understand that value? Essentially, yes, value-based pricing is important. But what most companies do when there's mass inflation is gravitate to cost. Because they see commodity prices increasing, and they are naturally drawn to that. Because they believe if they capture accurately their cost situation, they'll be able to save margin erosion. But unfortunately, tracking costs isn't the solution. And again, you've got to do the hard work there in understanding value and going through that journey. It's a journey, and it's not going to be a quick fix. I think in a way, the problem is that when companies are leaking margin quite significantly during times of inflation, It's almost easier to do what they know. Capture costs rather than go through that journey to understand the value. But often, I think the problem is that once they start to understand or go down that path of understanding their value, They realise that due to the fixed focus on costs, cost-plus pricing and operational efficiency, the value that they offer has diminished over time. It can be quite intimidating for businesses to realise that, recently, all their investment has gone in the wrong areas. Product innovation is very limited product innovation. They've stagnated the value and innovation in the market. What does that mean in terms of their pricing power? Well, it limits their pricing power. I think sometimes people look for-we've heard this term so many times-"a silver bullet". People are looking in life and in business, an easy solution to everything. Sometimes value-based pricing is sold as a silver bullet. I'll be honest. I think so many businesses, certainly B2B, but also B2C, are going to face tough price increase discussions with customers. Whether or not this week or next week, but certainly in the next couple of months. Because fundamentally, you can't absorb the cost increases we're seeing and keep costs flat. These conversations are going to be super tough no matter what pricing methodology you use. Because, like, fundamentally, certainly, if you're a cost-plus business and you focus on low cost and you have an articulated value to your customer base, they see you as low cost, and they see you as a commodity supplier, as well as cookie-cutter and all those sorts of things. In theory, when you come to them with a letter saying that from July 1st the price will increase by 15%, or whatever it is, that's a completely plausible number. At the end of the day, a very large number of these customers will go out and look at alternative suppliers. You will lose some revenue. You will lose some customers because we all know how things work. You’ll go out, you’ll shop around. You could potentially get a lower quote from somebody else. If they don't really value or understand the differences and think you're commoditis