A business can adjust and analyze pricing to maximize profit margin by conducting a price analysis. This involves understanding the cost structure of the business, including fixed and variable costs, and the price elasticity of demand for their product or service. The business can then experiment with different price points to see how they affect sales volume and profit margin. They can also use pricing strategies such as penetration pricing, price skimming, or value-based pricing depending on their objectives and market conditions.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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