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Pricing Power - Fact or Fiction?

Michael Beauchamp

According to Beauvestco, a management-consulting firm who advises companies on pricing, many North American companies reported that their pricing power is limited; they cited the following five buyers' perceptions as contributing factors that restrain their ability to implement and or sustain price increases:

  1. Multiple acceptable suppliers.
  2. Abundant supply of competitive products.
  3. Additional price concessions are achievable.
  4. Little product differentiation exists.
  5. Little service differentiation exists.

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