Our Pricing Power component is a measure of brand strength that quantifies a retailer's ability to consistently grow its margins over time.

A brand's strength reflects the consistency with which its message has been given and received over the entirety of its customer encounters. Brand loyalists will skip over competitive offerings in order to obtain the benefits of a product or a service they have come to enjoy and upon which they can count.

As a brand distinguishes itself first from commodity competitors and then from branded competitors, its desirability to its customers can command a price premium.

Sometimes this premium is reflected in an increased price to the consumer; sometimes it is reflected in a stable selling price which does not go down as costs are reduced. Healthy companies enjoy brands that command steadily improving gross margins.