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