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Price Sensitivity

There are only three ways to increase profits:  Increase Sales – can you produce any more?  Decrease Costs – can you reduce any more?  Raise Prices – can YOU actually do that? In this video we are looking at Break-even Points and Price Elasticity – really useful for measuring the extent to which a change in price will affect buyer behaviour.

Feel free to request the templates laura@thehiddenedge.co.uk. I am happy to share.

1. Recognise your position on the Price Sensitivity scale.

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2. Plot your product or service breakeven point.  This is just as important if you are a service based industry.

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3. Calculate your current Price Elasticity of Demand.  This is measure of your marketing activity.  Use this as a base for future pricing activities, primary research testing and research

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Please do share your experiences with these models in the comments below.  I am building a portfolio of small business case studies and would love to include examples of what has worked well for you.

PS – If you need further help then give me a call on 07962 626604 to arrange a Skype session with me.

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