What happens to sales
when you change the price?
Export your price and units sold by week, or from a price test. See how much demand moves when the price moves, with the likely range, using the example file or your own.
Three questions this answers
- How much does demand fall when we raise the price by one percent?
- Does the answer differ by channel, season or store?
- Is the estimate firm enough to act on, or is the range too wide?
What your file needs
- One row per week, store or product.
- The price charged.
- The units sold.
- Optional: promotion, season, channel or store columns.
What you get back
- The elasticity, with its likely range.
- Whether demand is sensitive to price or not.
- The same figure by channel or segment when your file has them.
- What a price change of a given size would do to units sold.
- The method named and the R code.