The proliferation of surcharging

The last couple of years have witnessed a rapid proliferation in ‘surcharging’, the practice of removing hidden costs and making them visible, or charging customers for new expenses associated with being in business. The growing popularity of surcharging suggests some companies may be obtaining a degree of pricing power they have been lacking in recent times. This paper examines the growing trend towards surcharging, where it is being practised, and evaluates some of the rationale, pros and cons of applying surcharges.