Pricing power
A company's ability to raise prices without losing many customers, one of the clearest signs of a competitive advantage.
Pricing power usually comes from a trusted brand, a product customers cannot easily replace, or a cost that is small in the customer's total budget. It shows up as margins that hold or rise when input costs increase.
Learn more in these lessons
- Industry analysis and competitive positioningHow does an industry's structure affect the profits its companies can earn?
- Competitive advantages and their limitsWhat protects a company from its competitors, and how can you tell?
- Judging competitive advantages in practiceHow can you tell whether a company really has a lasting competitive advantage?
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