Understanding Pricing Power

Discussion in 'School Of Stock Market' started by Vidhi Khanna, Jun 14, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    When a company has following attributes

    1. Easily pass on increases in costs to customers without having volume declines
    2. Strong brands and customer loyalty allowing company to charge premium price over competitors
      1. Pricing power is when you can sell $120 phones(manufacturing cost) to people at $650 just because you are Apple
      2. Making/marketing a product that is so loved by customers that they find ‘value’ even at increased prices
    3. The ability to increase the prices of your product without losing market share to competition
    4. Ability to price ahead of inflation
    5. When elasticity of demand of your product is not price sensitive
    http://www.tankrich.com/2015-23-understanding-pricing-power/
     
  2. priya agrawal

    priya agrawal Member

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    Pricing is a very big concept and it ultimately decide the end results that your product and services will be generating.
     
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