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FINANCIAL MODEL
Price Change Impact Model
Forecast the volume and profit implications of raising or lowering prices based on elasticity assumptions.
LIVE PREVIEW
| Scenario | Price Change % | Assumed Elasticity | Vol Change % | New Revenue | New Profit | Outcome |
|---|---|---|---|---|---|---|
| Conservative | +10% | -1.5 | -15% | $93,500 | $45,000 | Revenue Loss |
| Base Case | +10% | -1.0 | -10% | $99,000 | $55,000 | Profit Gain |
| Optimistic | +10% | -0.5 | -5% | $104,500 | $65,000 | Big Win |
| -- | -- | -- | -- | -- | -- | -- |
| -- | -- | -- | -- | -- | -- | -- |
Instructions
- 1Input Current Financials: Start with your base price, cost, and volume.
- 2Sensitivity Analysis: Test 3 scenarios (Best, Base, Worst) for elasticity.
- 3Focus on Profit: Revenue might drop, but if profit rises, the price hike is a success.
Pro Tip
You can import the downloaded CSV directly into Google Sheets, Excel, or Airtable. The formatting is universal.
About this Template
Don't change prices blindly. Use this model to predict the outcome before you act.
Key Features
Scenario Planning: Compare outcomes side-by-side.
Breakeven Calc: Built-in formulas.
Common Use Cases
Inflation Adjustments: Passing costs to customers.
Sales Planning: Assessing discount impact.
Frequently Asked Questions
What is a safe elasticity assumption?
-1.5 to -2.0 is standard for retail.