During an interview, a financial reporter asked Warren Buffet,
"How do you evaluate a business before investing in it?"
Buffett said, "The single most important decision in evaluating a business is
its pricing power. If you’ve got the power to raise prices without losing
business to a competitor, you’ve got a very good business."
"And if you have to have a prayer session before raising the price by a tenth of
a cent, then you’ve got a terrible business."
That statement is worth its weight in gold. Right?
One of the signs of a great brand is its pricing power.
The moment we think we have to reduce the price and run offers and promotions to
increase sales, we don't have a brand.
We're just in the commodity business.
#marketing #strategy #branding #sales #entrepreneurship
Posted by Rajesh Srinivasan on LinkedIn
link: linkedin.com/in/rajesh-srinivasan-author
"How do you evaluate a business before investing in it?"
Buffett said, "The single most important decision in evaluating a business is
its pricing power. If you’ve got the power to raise prices without losing
business to a competitor, you’ve got a very good business."
"And if you have to have a prayer session before raising the price by a tenth of
a cent, then you’ve got a terrible business."
That statement is worth its weight in gold. Right?
One of the signs of a great brand is its pricing power.
The moment we think we have to reduce the price and run offers and promotions to
increase sales, we don't have a brand.
We're just in the commodity business.
#marketing #strategy #branding #sales #entrepreneurship
Posted by Rajesh Srinivasan on LinkedIn
link: linkedin.com/in/rajesh-srinivasan-author