Navigating the highs and lows

With fewer promotions being offered in this challenging economic climate, getting pricing right is pivotal yet tricky. Some retailers are better able to absorb costs while others can raise prices without affecting customer demand or loyalty. This is the essence of pricing power and why more businesses are in pursuit of it.

In its simplest form, pricing power is the correlation between % price change to % demand change (up or down). The more pricing power you have, the better positioned you are to navigate the highs and lows of changing conditions and uncertainty with minimal impact to growth and profitability.