The CEO of Iron Mountain Inc IRM recently said that he had been “doing my inflation dance” and “praying for inflation” because it would benefit the company’s business and bottom line.
According to The Intercept, Iron Mountain’s CEO William Meaney told his investors last month that Iron Mountain had benefited from the current economic scenario.
“If you go back in terms of what we’ve been doing in terms of pricing and revenue management, we’ve been getting north of 200 basis points of a price increase during the zero inflationary period,” he told investors. “And, of course, now we’ve been able to take that up quite significantly.”
However, Meaney said that the company wasn’t taking advantage of its customers, and it had been asking consumers to “pay more of their fair share in terms of the value that we present.”
“People are seeing what FedEx, UPS, and others are having to do to manage their business and pass on that inflation,” The Intercept quoted him saying.
Earlier, Iron Mountain’s CFO Barry A. Hytinen said that “we do have very strong pricing power,” and for the company, inflation is “actually a net positive.”
Hytinen added, “We feel for folks” regarding inflation, but “we have a high gross margin business, so it naturally expands the margins of the business.”
Boston-based tech firm Iron Mountain is a data storage and management company with a current market capitalization of $12 billion.
As per its website, over 95 percent of the Fortune 1,000 are Iron Mountain customers.
Photo: Gerd Altmann from Pixabay