Kavan Choksi: What Higher Prices Reveal About Pricing Power A company can raise its prices and report stronger sales without knowing whether customers will keep buying at the new rate. Some customers accept an increase because they value the product, while others continue purchasing only until a cheaper option becomes available. Kavan Choksi highlights that customer demand is an important part of evaluating pricing power. The results become clearer over time, as customers adjust their purchasing decisions, and the company can assess whether higher prices have improved profitability without significantly weakening demand. Higher revenue does not necessarily mean a company is performing better. Examining repeat purchases, actual selling prices, and profit margins over time provides a clearer picture of whether customers are willing to continue paying more and whether the increase has strengthened the business.   Repeat Orders Put Higher Prices to the Test Cu...