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What is this Product?

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.

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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

The Excel costing calculator works out unit product costs for the optimum pricing - profit calculations.

  • From the program instructions - Part 1:
    1. Enter the product name and the unit costs. Use the Costing calculator to evaluate unit cost levels.
    2. Enter the time period that the levels of demand and total profits are referencing.
    3. Enter Quantity1 @ Price1 and Quantity2 @ Price 2 data values into cells I7/K7 & M7/O7.
    4. The elasticity of demand E is displayed in cell F11, the strength of demand A in cell F15.
    5. The price which yields maximum profits is displayed in cell F9, and the quantity of demand at this price in cell F10.
    6. The Maximum Profit is in cell I10.

    An easier way to see the relationship of price to demand to profit is to generate a Price - Demand - Profit Schedule and chart using the Schedules.

    To create a demand chart enter a starting price for the chart a few units of price behind the calculated best price value into I12 and the increments in price you wish to chart to adopt into K12. Now turn to the Tables 1 page and see how the price - demand - profit chart changes with each increment in price.
  • Changing Demand Strength:
    The price - demand relationship shifts upwards or downwards as the overall strength of demand changes.

    This shift changes the Price level calculations for maximum profits.

    To recalculate the Price level for maximum profits as demand strength changes, enter the percentage change in demand into F16, to calculate a new value of A.

    The new Price level for Maximum Profits and the new demand level at this Price are revealed in cells I15 & I16.

    The Maximum Profit for the Period is recalculated in cell L16.

    Quick Price -Max Profit Calculators for Multiple Products:
    Use the calculator sets provided between rows 21 and 30 for quick calculations of Demand Strength , Demand Elasticity and the Price Point for Maximum Profits, Demand at Max price and Total Profit.
  • Additional Features:
    Calculates the discount price that will maximise profits by creating extra demand to sell spare capacity.

    Calculates unit costs by reference to employee time costs, raw material costs output efficiencies.

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System Requirements
  • Windows 95/98/2000/ME or XP
  • MS Excel 97 or more

US$99.95 Universal Pricing Calculators

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