Monday, February 21, 2011

Warren Buffett Says Pricing Power More Important Than Good Management

Are you still having trouble convincing your C-Level of the value of pricing strategies and ongoing pricing training to your company’s profitability and growth?

Then maybe it’s time they listen to one of the most successful men in the world. Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway Inc., told Bloomberg this week that he rates businesses on their ability to raise prices and sometimes doesn’t even consider the people in charge.
"The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business."

Read the full article here. With the economy still in flux, it is increasingly important for pricers to stay ahead of the competition by controlling their pricing power. Many of this years Workshops, Breakout Sessions and Keynotes have been designed to address these concerns and give meaningful strategies for pricers to take charge of their pricing in the 2011 global economy. We hope to see all of you in Chicago!

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1 comment:

william said...

It's really true. Wal Mart with lowering the prices on suppliers, Microsoft with complete domination of the PC market. Fortunately most companies back down before true corruption of pricing.