Pricing Financial Analysis
Step-By-Step Guidance on Estimating the Potential Profit of a Price Change
The financial goal of pricing is to increase profits, not sales. This seems so obvious, but many pricing mistakes increase sales but hurt profits.
In this video, I’ll:
- Walk through an analysis I've used many times to estimate the potential profit impacts of a price change
- Explain how price cannibalization can have a massive impact on profits
- Clarify the relevant costs for pricing decisions
- Reveal the point of optimal profit