Why Pricing Power Is The Real Secret To Value Investing

Why Pricing Power Is The Real Secret To Value Investing

As seen in Forbes, billionaire CEO of Berkshire Hathaway; Warren Buffett stated "The single most important decision in evaluating a business is pricing power. If you've got the power to raise prices without loosing business to a competitor, you've got a very good business".

Investors that have spent any time delving into retail pricing know there are numerous approaches. Pricing approaches across industries, countries and companies typically fall into three categories:

  • Cost-based pricing
  • Competition-based pricing 
  • Customer value-based pricing

The ultimate goal of any company is to achieve an average until retail price, as close as possible to the initial price that they set the product for.


Learn how Stratinis can help you explore the power of pricing 

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