“The price of gas is up. No, wait, it’s down again.”
“I need to get my hands on the newest cell phone. Sure, it costs more than my rent, but check out the new camera.”
“Our electric bill went up. I guess we’ll cut back on takeout this month.”
Do these sound like comments you’ve made or heard — comments that leave you feeling as if you’re riding a rollercoaster? Then you’re already familiar with the price elasticity of demand.
Price elasticity of demand is how businesses know where to set the price for what they sell. It sounds complicated, but it’s a basic economic principle with a simple formula to follow. And once you understand it, you have access to untapped profits and higher customer satisfaction.
Strap in. Buckle up. We’re going to ride the ups and downs of price elasticity and explore how it drives successful pricing strategies
Read the full article on Salesforce.org blog.
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