Estimating the Price-Response Function

How much will sales volumes - and profits - change if you change your price?

A small price change could cause sales and profits to skyrocket - or could destroy profits because sales hardly change. Do you know which is the case for your products? Is there a way to test whether price changes might lead to higher profits? In this video, I'll:

 - Explain what the price-response function is and how it differs from the supply and demand curves of economics

 - Show when the price-response curve is steepest and flattest

 - List times when customers are more price sensitive

 - Walk through ways to estimate the price-response function for small price changes at your company

This video comes from my Pricing for Profitability Course

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

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