Sunflower Intelligence
Marketing

Pricing

How much units fall when price rises, and the price that earns the most.

How sensitive buyers are to price, from price tests, and what that implies for revenue and profit.

Price sensitivity

Fit demand on a log-log scale, ln(units) = a + b · ln(price), so the slope b reads directly as the price elasticity: the percentage change in units for a 1% change in price.

Price tests

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With a cost, the tool estimates the profit-maximising price.

—price elasticity

Units sold against price, with the fitted demand curve
  • The model assumes the same elasticity at every price. Trust it inside the range you tested; demand often turns sharply elastic near a price ceiling.
  • The “1% rule” (units change ≈ elasticity × price change) is a small-change approximation; the exact figure above uses the full curve.
  • Prices that moved with promotions, seasons or competitors will blur the estimate. Randomised price tests are the cleanest evidence.

Sources

  1. All example data on this page is synthetic, generated for the demo.