From the book The Investment Checklist by Michael Shearn.
“Businesses that have pricing power typically have several
characteristics in common such as high customer- retention rates; their
customers spend a small percentage of their budget on the business’s product or
service; the customers generate high margins and lots of cash flow; or the
quality of the product is more important to the customer than the price.”
...
"Price increases add value to the business when they add to operating income, rather than just offsetting new expenses."
...
"Price increases add value to the business when they add to operating income, rather than just offsetting new expenses."