§ Fundamental
Pricing power
Glossary version 2026-07-12.v1 · reviewed July 12, 2026
The ability to raise prices without losing enough customers or volume to damage revenue and profit. Durable pricing power is evidence of customer value and competitive advantage.
Pricing power means a company can increase prices while retaining demand and protecting or improving margins. It is stronger when customers have few substitutes, switching is costly, or the product is a small but essential part of the customer’s budget. Analysts confirm pricing power through price-versus-volume disclosure, retention, market share, and margin behavior rather than relying on management claims alone.