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Business Strategy 9 min Dec 02, 2021

Building Pricing Power: How Strong Brands Command Premium Margins

Author: Marcus Vance (Wharton MBA) Fact-Checked & Reviewed

If you can raise prices without losing customers to competitors, you have a genuine economic moat. If raising prices by 5% loses 20% of your accounts, you are selling a commodity.

Four Sources of Moats

Network effects, high switching costs, cost advantages, and intangible assets (brand and patents). Focus on deepening at least one moat area.

MV

Written by Marcus Vance

Wharton MBA alumni, business strategist, and author at SuccessInformatics.