How are goods and services priced in Bitcoin Cash? Isn't the volatilty a problem?

Most goods and services in the economy are priced in US dollars (or the relevant local fiat currency), but simply paid for with BCH. The price fluctuations are not a problem, as your BCH wallet app will automatically detect the right amount to send based on the current price. Point of sale transactions are easy and fast (thanks to 0-conf), it looks like this:

Bitcoin Cash is not expected to be stable relative to goods and services until it has subsumed most of the world economy. The more daily trade it supports, the less any individual trade will affect it, so by the time it is global size it would be stable similar to the current US dollar (except consumer prices would slowly drift down over time instead of up). Before reaching global size, it will always be volatile, as it will either be small and therefore heavily affected by variable daily trade, or already quite large and therefore will be absorbing non-BCH trade at a faster and faster rate.

During the transition, it is up to you whether to price things in your local fiat currency if that makes sense to you, or to switch to pricing in Bitcoin Cash if it makes sense for that item and either you or the economy around you has disconnected sufficiently from fiat currencies. For example, early access to episodes of The Bitcoin Cash Podcast is priced directly in BCH (e.g. 0.003 BCH aka 3 milliBCH). The price for an episode is set, and then is stable in BCH but fluctuates mildly in USD.