Pricing Power What comes to mind when you hear the phrase: “raise your prices”? Pricing will always be the fastest path to profitability. Full stop. The trick is getting it right. Before we unpack what goes into it, let me share this Charlie Munger quote on the concept of “pricing power” in business. Buffett and…
Most business owners have a loose idea of their unit economics (margin at the product level), but it’s usually: Your pricing strategy can make or break profitability… generally, I see companies fall into 2 buckets: those with revenue or pricing problems, and those with cost or expense control problems. Today, we’ll drill deeper into a pricing concept…
With Labor Day promotions behind us, it feels like a good time to talk about the financial impact from discounts, promotions, and marketing campaigns on your business. It goes something like this: These aren’t necessarily bad strategies. Remember, promotion is one of the “4 P’s of Marketing.” But we typically fail to account for them properly when…