Calculating Customer Price Sensitivity

Quickly Estimate How Much Your Sales Will Change if You Change Your Price

You can use Excel's regression and trendline functionalities to quickly determine how much your sales volume will change if you change your price.

• Unlock the power of regression analysis to measure the relationship between price and sales volume with real data.
• Understand the formula for price sensitivity by leveraging the regression line equation (Sales = Slope × Price + Intercept).
• Effortlessly analyze trends with Excel's built-in tools, including the LINEST function for instant slope and intercept calculations.
• Generate trendlines directly in Excel to visually confirm and communicate your price-sales relationship.
• Verify statistical significance with the R-Squared value, ensuring your data-backed decisions are rock-solid.

This video comes from my Modeling Profitability and Making Forecasts in Excel Course

CPAs: Want to get CPE credit for videos and courses like this? Check out my CPE page.