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 needs to supply just two datasets, demand1 @ price1 and demand2 @ price2. From this information the program will give you the elasticity of demand, the demand quantity at the optimum price, the strength of demand and the maximum profit.
The second part of the program works out the optimum discount price to sell unsold capacity to maximise profits.
The third part of the program supplies a costing calculator which enables you to keep track of unit costs. Use these unit cost values in the pricing calculators to calculate profit margins.
Part 1 of the program solves this equation for maximum profit value:
Profit for period = Total Revenues - Total Costs.
At increasing price levels:
Total Revenues = the demand quantity (sales volume)*price.
Total Costs = the level of demand (sale volume)*unit cost.
Excel finds the exact Price at which:
Profit for period = Quantity*Price - Total Costs = Maximum value |
