2 Mature Businesses That Still Have Pricing Power
Pricing power refers to a company's ability to raise prices without losing customers. Typically we think technology companies or critical software developers are companies that have pricing power and that may be true. But we often don't think about mature businesses like Home Depot (NYSE: HD) and Lowe's (NYSE: LOW). And yet these two may have strong potential to raise prices without losing business.
In this video clip from Motley Fool Live, recorded on July 15, Fool contributor Jon Quast talks about Home Depot's and Lowe's pricing power with follow contributors Danny Vena and Brian Withers. To him, many purchases at these home-improvement stores aren't discretionary purchases, making consumers more likely to pay up for what they need. Of course, that's assuming they even notice the increased prices in the first place.
Source Fool.com
