Tuesday, July 30, 2024

Lost art of raising prices

Today's Big Take is here.

July 30, 2024

Koji Shiratsuki of Hinoden Electric Industries in Matsue, Japan, in July. Photographer: Fred Mery/Bloomberg

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After decades of deflation kept prices and salaries frozen in time, many smaller Japanese companies don't know how to ask for more money. Doing so can be frowned upon as greedy in Japan, and people are resistant to change after years of not having to pay more. Faced with an existential threat as input costs rise, executives are taking lessons in how to negotiate. 

"We've never had to let people go," said Koji Shiratsuki of Hinoden Electric Industries. "Unless something changes, there will be no company." Whether business like his can succeed at raising prices will ultimately determine whether the $4.2 trillion economy's much-touted revival is real. 

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