I know for years now you’ve heard me say plenty of times, “Don’t cut the price, build the brand.” And I’ve given you plenty of reasons to think that way, and several of you have offered some even better reasons in your e-mails and posted comments as to why you refuse to compete on price, too, which I always appreciate – and not just because we agree!
Turns out Warren Buffett, considered by most to be the greatest investor of all time, thinks that’s a good idea, too. Here’s a quote from him on the matter:
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.” – Warren Buffett