It’s a longstanding debate that’s reemerged during Hurricanes Irma and Harvey: During a time of crisis, should merchants raise or maintain prices when demand increases for essential products such as water, gas, and bread? Now, due to the influence of social media, a new alternative is emerging: Why not lower prices during these critical times?
Why Businesses Should Lower Prices During Natural Disasters
It helps your customers, which helps your brand.
September 11, 2017
Summary.
Economists think businesses should raise prices when crises (such as hurricanes) lead to spikes in demand for basic goods, like food, water, or gasoline. Although there are solid economic rationales for doing so, companies such as JetBlue are starting to recognize that doing the opposite — and lowering prices even as a crisis sends demand soaring — can be an opportunity to burnish a brand and deliver long-term profits.