Turning Pricing Power Into Profit

Company managements looking to achieve earnings growth often default to cost cutting, stock buyback, accounting gimmicks and other methods. But there is another way. More often than not, managements overlook pricing as a driver of earnings growth. Pricing power can be an effect way of boosting a company's bottom line.

[buffett]

McKinsey & Company, the trusted advisor and counselor to many of the world's most influential businesses and institutions, published a detailed insight earlier this year, which looked at the five simple steps businesses can take to boost sales through the simple act of raising prices -- an act that's usually more effective and less time consuming than cost-cutting measures usually used to boost earnings. McKinsey's...