Description of Universal Pricing Calculators
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Universal Pricing Calculations for Excel. 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, demand1@price1 and demand2@price2.
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 additonal 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. Use the quick Price -Max Profit Excel calculators for three price results from three different products.
Use the Change demand calculator to move optimum price points up or down as demand changes.
Use the Second Pricing Strategy Excel calculator to find the discount price that will create the most profitable level of additional demand to sell spare/surplus capacity. Use the Excel costing calculator to work out unit product costs for the pricing - profit calculators. |
