Much has been written about pricing power, which is the ability to raise prices and have customers continue to buy from you. Disney, Netflix, and Pfizer have recently shown us examples of exercising their pricing power to improve their overall profitability. Last week, I was reminded of Martin Shkreli, an example of an egregious abuse of pricing power. It clarified how important pricing power is to increasing profitability, but also of the need to be judicious in setting or increasing prices.