{"id":560787,"date":"2012-06-27T03:50:10","date_gmt":"2012-06-27T07:50:10","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/does-your-company-have-pricing-power\/"},"modified":"2022-01-31T12:44:38","modified_gmt":"2022-01-31T17:44:38","slug":"does-your-company-have-pricing-power","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/does-your-company-have-pricing-power\/","title":{"rendered":"Does Your Company Have Pricing Power?"},"content":{"rendered":"<div>\n<p>If Starbucks raised the price of a cappuccino, sales most likely would not be affected. If your attorney raised his or her hourly rate, would you switch law firms?\u00a0 If a company or service firm does not have pricing power, then its value is less than it should be. Here are a few ways to develop or increase pricing power:<\/p>\n<ul>\n<li>producing a discernible branded product or service<\/li>\n<li>innovating with patent production such as Apple\u2019s i-Pod<\/li>\n<li>providing such exceptional service that competitors are not able to replicate it<\/li>\n<\/ul>\n<p>An interesting question for company management is \u2013 how should they set their prices?\u00a0 Sometimes the answer is that management figures out at what price the item can be sold and then works their costs backward.\u00a0 The more traditional way is to add up the cost of labor, material, and overhead plus an acceptable profit.\u00a0 But times have changed, and in many cases, the power of pricing has moved from the producer to the customer.\u00a0 Today, Wal-Mart tells most of their vendors what they will pay for certain items, and Ford tells their suppliers the same.\u00a0 On that basis, many companies are beholden to the Wal-Marts and the Fords of the world and do not have the benefit of pricing power.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If Starbucks raised the price of a cappuccino, sales most likely would not be affected. If your attorney raised his or her hourly rate, would you switch law firms?\u00a0 If a company or service firm does not have pricing power, then its value is less than it should be. Here are a few ways to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-560787","post","type-post","status-publish","format-standard","hentry","category-selling-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560787"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560787\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}