pricing power

Definition

The extent to which a company may raise prices without reducing demand for its products. A company that offers a unique product or has few competitors typically has strong pricing power. It may raise prices without reducing demand.

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How much power do your suppliers have?

Convincing customers to buy your products is tough enough without suppliers giving you a hard time. Basic rule of thumb: The fewer the number of suppliers, the more sway they have. Take the steel indu ... Read more

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