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.

Watch the video for background information about the 9 Pricing Strategies, feel free to request the templates laura@thehiddenedge.co.uk. I am happy to share.

1. Recognise your position on the Price Sensitivity scale.

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

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

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.

PPS – This exercise forms part of a series of workshops on Profitable Pricing

Published by TheHiddenEdge

I love words - they communicate so much or so little depending on how you use them. Come and explore my thoughts with me in this, my learning journal. View all posts by TheHiddenEdge