The Universal Pricing Excel Spreadsheets calculate
price - demand relationships and uses standard accounting formula to give you
the exact price which will produce the maximum profit for any product.
The user supplies two datasets, [email protected] and [email protected] The program calculates elasticity of demand (change in demand for $1 change in price) and the price which yields the maximum profit.
The second part of the program calculates discount price required to create additional demand that will sell unused spare capacity or stock at maximum profit.
The third part of the program supplies a costing calculator for Excel. Input these unit cost values in the pricing calculators.
Excel finds the exact Price which maximizes this standard profit formula:
Profit for period = Demand*Price (Revenues) - Demand*Unit Costs = Maximum value.
An easy way to understand the relationship of price - demand - profit for any product is to use the program to drive the Price - Demand - Profit schedule and charts provided. You will see that as prices start to rise in the chart, profits increase, reaching a maximum plateau, then decline as demand falls away. The program calculates the maximum price point of any product curve that produces the maximum profit
The Excel costing calculator works out unit product costs for the optimum pricing - profit calculations.
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