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BREAK-EVEN ELASTICITY
For high-margin SKUs, which is more likely to grow profit?
Break-evens differ by variable margin:
Decrease Price?
If drop price by 4%,
sales must increase more than 7% to grow profit.
Break-even elasticity of -1.75 (i.e., 7/-4)
B2B: Possible
B2C: Possible
Change in Price
Break-even change in sales
Increase Price?
If raise price by 4%, sales must decline less than 6% to grow profit.
Break-even elasticity of -1.5 (i.e., -6/4)
B2B: Possible
B2C: Possible
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