Pricing Power

Link: Smile Curve

Most important quality of a business? Pricing power. Not market share, not branding. Price power - power is the most important piece here: it means being able to raise prices without losing business. How do you get there? Increased added value via your product and service on top of it. Overtime, you build your brand asset, and you can use it to enforce your pricing power.

See Apple's pricing power. Their seemingly capability of raising prices without affecting sales.

Even so, there are other brands that can push even further on pricing power: The Business of Fashion reported that, in 2022, Louis Vuitton had an estimated margin above 50 percent. Compare that to Apple, the most valuable company in the world, which had a profit margin of around 30 percent last year.

As a new company, you don't have any brand yet and you have limited availability to channels, so you need to exceed at product and service. There's really no other way of growing.