This model brings more certainty to pricing decisions with methods that answer 3 basic questions.
- 1. How do prices affect revenue & units sold?
- 2. What price optimizes revenue?
- 3. What price optimizes profit?
The model has these features:
- Test markets and test prices
- Sales results in test markets
Estimate price elasticity from test data
- Elasticity = % change units / % change price
- Elasticity can change over price range
- Returns statistics for fit of model & data
if you want to take account of price interactions among several products, including
competitors, see our "Price Elasticity for Several Products".
Fully Customizable
Using our automated modelling technology you can create a report
that exactly suits your needs. Turn on and off major features, specify time line, "dimensions" such as test markets, currency symbols, and date formats in a simple online form.
Easy to Use
Once downloaded, your data is presented, in a logical and intuitive format in Excel. Your Price Elasticity spreadsheet contains:
- A carefully arranged layout
- Comments on every variable table
- Collapsible groups hide detail until needed
- Easy to understand symbolic formulas
- Easy modifiable data and preferences
The model contains everything you need to use pricing tests to optimize prices.