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Pricing Analytics PPT: Find the optimal price of your product
Estimating Demand Curves Without Price Elasticity to determine the optimal price that maximizes your profit margin.
The most common way of constructing demand curves depends on the product’s price elasticity. But what if that input is not available, or the figures cannot be obtained for a given product?
Another way to do this is by making reasonable estimates of the demand for a product at its high, median and low price points, which then allows you to construct an estimate of the demand curve over the range of those given prices.
The following downloadable presentation shows how you can use Excel’s line fitting and solver functionality to construct an estimate of the demand curve, without having to know the price elasticity of the product at hand.
This will allow you to determine the optimal price for the product, which will maximize your profit margin.
- Michael Lamont
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1 powerpoint, 1 video
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- MA(last updated: 19/06/2018 08:26)
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