That Apple can continue to grow revenue despite a declining sales volume, show the power of pricing; with an estimated 2019 global market share of 18%, Apple generates about 65% of the entire industry’s profits. Now, this is down from the more than 90% of the industry’s profit, Apple created a few years back and is an indication of how its lower-priced phones and, therefore, lower-margin products lead in sales. (The iPhone XR, at US price $599, was the globally best selling smartphone in Q3 2019).

Yet, many companies don’t use the pricing lever the way Apple does. Instead, most companies are timid in their pricing, leaving money on the table because they don’t know what their customers are truly willing to pay, nor do they have a good idea of what they are willing to pay more for. In Appel’s case, they are willing to pay more for the brand and everything the brand stands for. Despite having products that do not provide customers with industry-leading technology.

Do your company work the pricing lever?