According to a study by McKinsey & Company, a 1% price increase, assuming demand remains constant, can lead to an 8.7% increase in operating profits (assuming no change in volume). This data point underscores the power of strategic pricing in driving profitability and is a testament to the potential of well-considered pricing decisions. Companies like Apple have used this approach, leveraging strong branding and compelling value propositions to justify premium pricing, which maximises their profit margins.

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Stay tuned for our series on Pricing Strategy...