The client is the Senior Vice President for Strategy and Innovation of a prominent commercial laundry manufacturer, responsible for the growth and success of the company. The manufacturer is a key player in the industry space, known for manufacturing top-quality commercial and residential washers and dryers.
The client engaged Flatworld Solutions to conduct an overall aggregated elasticity analysis for all their pricing models. They sought valuable insights to support their business decisions, particularly in assessing the impact of revised pricing on their products.
During the project, we encountered the following challenge -
Insufficient Information Availability
The client faced difficulty accessing the necessary information for an effective revised pricing assessment.
Sales Volume Concerns
The client expressed genuine concerns about the potential drastic decrease in sales volume, necessitating well-informed pricing decisions.
To address the challenges and meet the client's specific requirements, we devised a comprehensive business solution -
In-depth Elasticity Analysis
Our team conducted extensive elasticity analysis, analyzing customer responsiveness to price changes across different products and models.
Essential File Generation
We created a suite of files encompassing elasticity values, demand curves, and price increase ranges. These files considered various demand decrease scenarios, ranging from 0% to 5%, 6% to 10%, and 10% to 15%. An insight box was included to facilitate decision-making.
2023 Demand Forecasting
Leveraging average elasticity and unit price changes, we accurately forecasted the 2023 demand, providing the client with data-driven planning insights.
Our team validated assumptions to ensure that the recommended price increases were well-founded and aligned with the client's goals.
Our efforts and strategic analysis yielded significant results for the client -
Comprehensive Report with Elasticity Models
We delivered a detailed report featuring multiple elasticity models to guide the client's pricing decisions effectively.
Value Capture and Price Increase
With the insights from our analysis, the client could confidently capture sufficient value among their customers, leading them to plan product price increases.
Outsource Research and Analysis Services to Flatworld Solutions
At Flatworld Solutions, we specialize in empowering businesses with strategic research and analysis services, including pricing analysis and elasticity modeling. Our experienced team leverages cutting-edge methodologies and in-depth industry knowledge to help businesses make informed decisions. By partnering with us, companies can optimize their pricing strategies and enhance overall profitability.
Contact us today to discuss how we can contribute to your goals.PN1567873