Pricing and Power: Three Perspectives to Transform Strategy and Profitability

By Dr. Stephan M. Liozu

When uncertainty rises, companies crave control, resilience, and clarity. At the center of that pursuit stands one lever often underestimated in its impact: pricing. Pricing is more than just a figure on a spreadsheet. It is a reflection of value, strategy, discipline, and competitive positioning. In today’s volatile environment, pricing must evolve from a tactical task into a core source of strength, one that can even serve as an anxiety buster amidst uncertainty.

The notion of power in pricing can be explored from three essential angles. First, pricing power reflects a company’s ability to raise prices without losing demand, the classic economic benchmark of brand strength and customer loyalty. Second, the power of pricing as a business function lies in its unmatched ability to drive margin, profit, and return on investment. Third, making pricing your power means elevating it beyond a functional role to a strategic and cultural priority that differentiates your business in the market.

These three perspectives are not interchangeable. Each holds distinct meaning and relevance. But when combined, they have the potential to reshape how pricing is viewed, practiced, and valued across the organization.

1. Pricing Power: The Market’s Mirror

Pricing power is often misunderstood. It doesn’t mean raising prices freely; it means doing so without triggering customer loss or demand drop-off. It reflects a strong value proposition, customer loyalty, product uniqueness, and brand equity.

True pricing power is rare and must be earned and nurtured. In commoditized markets, it’s fragile. In differentiated segments, it’s more durable, though never guaranteed. It comes from superior products, clear differentiation, exceptional customer experience, and smart pricing technology. You retain it by reinforcing your value, managing expectations, and avoiding behaviors like indiscriminate discounting that slowly erode the very power you worked to build.

Pricing power allows companies to turn inflation into margin protection instead of margin erosion. It transforms market disruption into an opportunity to lead with value rather than retreat into discounting. Ultimately, pricing power reveals both your market position and your internal discipline in value management.

2. The Power of Pricing: Profit’s Sharpest Lever

Beyond the external market lies the broader, often overlooked, internal force of pricing. This is not about what you can charge, but about what pricing can deliver to your bottom line. Among all profit levers, pricing stands apart. A one percent improvement in price realization typically drives greater profitability than equivalent gains in cost reduction or volume.

Yet many companies underinvest. They treat pricing as a back-office function, managed by spreadsheets or siloed in sales. But when elevated to a strategic level, pricing becomes a growth engine. It guides product strategy; influences demand and reshapes customer behavior.

It's true power lies in precision and reach. Pricing influences every transaction, touches every deal, and shapes nearly every customer interaction. It determines whether you win or lose business, whether your offers seem credible or overpriced, and whether innovations are rewarded or ignored. Still, in many organizations, pricing remains an afterthought. It is often reactive, fragmented, and underutilized. That must change. With discipline, data, and executive focus, pricing becomes one of the most immediate and powerful levers for growth and profitability.

3. Making Pricing Your Power: Culture, Not Just Capability

The third perspective is about identity, not just function. Making pricing your power means weaving it into the DNA of your business. It’s about building a pricing culture where value is understood, protected, and championed.

Organizations that succeed here treat pricing as a strategic differentiator, not a constraint. They invest in talent, tools, and training. They give it a seat at the strategic table and align sales, marketing, finance, and product teams around shared pricing goals. They also empower the function and continuously improve its performance.

Confidence is key. Moving from reactive to proactive pricing requires alignment, leadership support, and a long-term commitment. The reward? Not just better pricing outcomes—but deeper customer trust, stronger commercial execution, and a more resilient business model.

Unifying the Three: A Blueprint for Pricing Excellence

Too often, companies focus on just one of these ideas. They chase pricing power without building the internal capabilities to support it. They optimize for margin without aligning culture and strategy. Or they assign pricing responsibilities without truly empowering the function.

The best-performing companies understand that these three pillars reinforce one another:

  • They build pricing power by delivering consistent value and brand strength, giving them leverage in the market.
  • They harness the power of pricing through analytics, governance, and leadership to drive margin and profit.
  • They make pricing their power by embedding it into strategy, culture, and decision-making across the business.

When unified, these pillars turn pricing into a sustainable source of strategic advantage.

Conclusion: Turn Pricing Potential into Pricing Power

Pricing and power have never been more intertwined. In today’s volatile landscape, outdated pricing habits and siloed processes won’t cut it. Leaders must ask:

  • Do we truly have pricing power?
  • Are we maximizing pricing’s influence on profitability?
  • Are we making pricing a strategic advantage?

These are not academic questions. They require real, organization-wide action. And when managed well, pricing becomes the most powerful tool in your commercial arsenal.

Ready to unlock the power of pricing? Contact us to explore how it can boost profit, strengthen strategy, and build lasting competitive advantage.

Stephan Liozu, Ph.D., Chief Value Officer at Zilliant, is a global expert in pricing, innovation, and value management with 20+ years of experience. He has authored 15+ books, including Pricing—The New CEO Imperative (2021) and Value-Based Pricing (2024)

start pricing with confidence

start pricing with confidence