To convince a CEO of a brand's value, ask one simple question: 'Do we have pricing power?' This metric—the ability to raise prices at or above inflation without losing demand—cuts through marketing jargon. It is the most direct, tangible indicator of brand health that resonates with finance-focused leadership.

Brands should be transparent about price increases due to external factors like tariffs. Unlike airlines that permanently added fees, businesses that remove surcharges when costs decrease build long-term trust and avoid commoditization.

Pricing power allows a brand to raise prices without losing customers, effectively fighting the economic principle that demand falls as price rises. This is achieved by creating a brand perception so strong that consumers believe there is no viable substitute.

Consumer Packaged Goods (CPG) companies drove revenue through price increases, but this came at the cost of falling volumes. By pushing prices closer to the perceived value, they eliminated the "consumer surplus"—the extra value a customer feels they get. This made private label alternatives more attractive and damaged long-term brand relevance.

When a new KFC premium product wasn't selling, they doubled the price instead of discounting it. This aligned the price with consumer expectations for a premium item, signaling quality and causing sales to soar. Low prices can imply low quality for high-end goods.

When Nespresso priced a feature-rich coffee machine the same as its basic model, customers grew suspicious. Assuming a hidden flaw in the advanced version, they overwhelmingly purchased the simpler one, showing how price equality can paradoxically devalue a superior product.

Maximizing profits in a crisis, such as a hardware store hiking shovel prices during a blizzard, ignores the powerful economic force of fairness. While rational by traditional models, such actions cause public outrage that can inflict far more long-term brand damage than the short-term profits are worth.

AI uses shopper clickstream and sales data to segment customers and SKUs with precision. This allows brands to offer targeted discounts where needed, maintaining trust by avoiding deceptive practices like shrinkflation and being transparent about necessary price increases on less elastic products.

AI analyzes sales, operations, and media data to identify price elasticity across product bands. Brands can then increase prices on premium items where consumers are less sensitive, while keeping prices flat on essentials, thus protecting margins without alienating the entire customer base.