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The Client

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.

Client Requirements

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.

Project Challenges

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.

Our Solution

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.

  • Assumption Validation

    Our team validated assumptions to ensure that the recommended price increases were well-founded and aligned with the client's goals.

The Result

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.

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