Price Analysis

Price Analysis projects outcomes for pricing from 50% to 200% of the current price and calculates the optimum price. The optimum price provides the highest surplus (profit). It can be utilized to test the impact of pricing changes on revenue and surplus and identify the Optimum Pricing to maximize business surplus.

Price analysis can be easily undertaken using our Business Performance Analysis Modules.



Price Analysis combines the business revenue, variable and fixed expense relationship of a business with price and number of sales changes to determine the point at which the greatest profit/surplus is achieved. This is the Optimum price.




The impact of price changes and sales volume is not intuitive. Due to variable and fixed expense ratios business profit is not directly proportional to business revenue. Price analysis provides a quick and easy approach to exploring a range of price and number of sales relationships to determine the impact of price changes on business profit. A Price plot clearly displays the profit/loss relationship for prices from 50% to 200% of the current price.




Price Analysis is performed by using Step Values of 0.5 to 2.0 (ie 50% to 200%) of the current Average Sale Price to step through price ranges, calculating the corresponding Profit/Surplus based on the Price change data and identifying the price providing the maximum Profit/Surplus.

You can easily perform Price analysis using our Business Performance Analysis modules.