[New post] Pricing Power and Inflation (1/n) intrinsicinvesting.com/2022/02/16/pri…
"Pricing power doesn’t mean raising prices in an inflationary environment. When consumers expect higher prices on their regular purchases, companies with and without durable competitive advantages can raise prices without much concern for losing business." (2/7)
"[True] pricing power is the ability to confidently raise prices at times when your competitors need to have a prayer session before they would consider raising theirs." (3/7)
"By communicating with its customers that in order to continue its superior service it needs to maintain a spread over cost, $ODFL has grown revenue per shipment at a 5% annualized growth rate while cost per shipment grew 4% over the period." (4/7) 
"Historically, this pricing discipline has been rare in the LTL industry. Competitors often used price in response to capacity shortages or oversupply...While ODFL’s competitors may have taken temporary share by dropping prices, the long-term results are miles apart." (5/7)
"As long as our companies continue to deliver superior customer value propositions, we have no concerns about their pricing power or ability to manage through challenging economic times." (6/7)
Today's post is also available in podcast format (7/7) open.spotify.com/episode/17bpvE…
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