134 - Do You Have Pricing Power, or Are You a Commodity?
Pricing power is the ultimate indicator of business resilience. Learn how to test whether you’ve built a true value moat or if you’re just another commodity in your market.
Do You Have Pricing Power, or Are You a Commodity?
Here’s the test:
If you doubled your price tomorrow, would clients stick with you or look for the next cheapest option?
Most entrepreneurs overestimate their pricing power. But the truth is simple: the stronger your moat, the less price-sensitive your market becomes.
Key insights from this episode:
1. Pricing power is a proxy for trust.
If clients stay even when you raise prices, it’s not luck; it’s the result of positioning, results, and perceived irreplaceability.
2. Commodities compete on price. Brands compete on value.
If the only reason a client chooses you is because you’re cheaper or faster, your business has no defensibility.
3. Moats aren’t features; they’re strategic assets.
Whether it’s brand equity, unique IP, client experience, or embedded systems, resilience comes from depth, not discounts.
4. Revenue growth without pricing power is fragile.
You can scale topline numbers, but without margin control, your bottom line stays weak and your business stays exposed.
Final Insight:
In every industry, there are two types of businesses: Those that set the terms and those that chase them.
This episode forces you to ask the tricky question: Are you selling a solution people value, or are you just another option on the shelf?
Highlights:
00:00 Introduction: The Pricing Power Test
00:04 Understanding Pricing Power
00:08 Commodity vs. Moat: Client Reactions
00:15 Evaluating Your Position
Links:
Website: https://www.marcogrueter.com/
LinkedIn: https://www.linkedin.com/in/marcogrueter/
Transcript:
Would clients still buy if you double the price? Pricing power is the truest test of resilience. If clients walk, you are a commodity. If they stay, you have built a moat. Do you have pricing power or are you a commodity?