This chapter explores the pricing struggles of small and medium-sized businesses in Japan amidst rising costs and changing economic conditions. A seminar in Matsue emphasizes the need for enhanced negotiation skills to help managers advocate for necessary price increases. The discussion highlights the broader implications for the Japanese economy, particularly the impact of historical deflation and current inflation on different business sizes.
Costs are rising in Japan and small businesses risk being squeezed into oblivion if they don’t figure out how to raise their prices. After decades of deflation, many small Japanese companies are out of practice on exactly how to do it.
Today on The Big Take Asia, host Rebecca Choong Wilkins talks to Bloomberg senior editor Reed Stevenson about a class he visited where people are relearning the long-lost skill of negotiation, and what a failure to raise prices at these small businesses – which make up 90% of the economy – could mean for Japan’s future.
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