Demand Curve Plotter
Plot historical Price vs Quantity data to visualize your product's specific demand slope. Identify if demand is elastic (flat) or inelastic (steep).
Add Observation
Tip: Look for the general direction of points. If points are scattered randomly, price may not be the main driver of your sales volume.
Price (X) vs Quantity (Y)
Reading the Scatter
Visualizing sensitivity.
The Trend
Imagine a line going through the dots. If it points down steeply, you are safe to raise prices. If it is flat, be careful.
The Cluster
If all your points are clumped in one area, you haven't tested enough price points to know your demand curve.
The Outliers
Points far above the trend line represent high-performance days (e.g., successful ad campaigns). Points far below are low-performance (e.g., tech issues).
Execution Steps
Enter observed Price and Sales Quantity pairs from your history.
The tool plots the scatter graph (X=Price, Y=Quantity).
Observe the trend: A steeper slope means lower elasticity (inelastic). A flatter slope means higher elasticity.
Remove outliers (e.g. holidays) to see the true organic curve.
Pro Strategy
- Remove outliers (e.g. Black Friday) to see the true organic demand curve.
- If the curve is vertical (steep), you have pricing power (Inelastic). Raising prices won't hurt volume much.
- If the curve is horizontal (flat), you are in a commodity market. Raising prices will kill volume instantly.
Core Concepts
Demand Curve
A graph showing how the demand for a commodity or service varies with changes in its price. It typically slopes downwards (higher price = lower demand).
Slope
The rate at which quantity changes as price changes. This visualizes elasticity. Shallow slope = High sensitivity (Elastic). Steep slope = Low sensitivity (Inelastic).
Outliers
Data points that don't fit the trend. These often represent holidays, promotions, or stock-outs and should be excluded for accurate analysis.
What is Demand Curve Plotter?
The Demand Plotter visualizes historical sales data to reveal the relationship between price and volume. By plotting actual observations, it helps identify the natural elasticity of your product without relying on theoretical models. It's the most 'honest' view of your market reality.
Best For
- • Analyzing past sales performance.
- • Checking if a price change had the expected impact.
- • Identifying the 'Noise' in your sales data.
Limitations
- • Correlation does not equal causation (other factors affect sales).
- • Requires sufficient historical variance in price to be useful.
- • Does not account for seasonality unless you filter data first.
Alternative Methods
Elasticity Simulator
Uses a mathematical coefficient to project future scenarios.
A/B Testing
Running controlled experiments to isolate price impact.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Coffee Shop Chain
Sales were fluctuating wildly.
Plotted Price vs Qty. Found that sales volume was actually stable across price points, but varied by weather.
Ebook Publisher
Sales dropped after price hike.
Plotter showed a flat demand curve (highly elastic).
Luxury Watch
Does price affect volume?
Plotter showed a vertical line (Inelastic).