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← Deep dives
What ifFMCG, retail and distributionUse case, not a client result

What happens to margin if we change price?

Measure how sensitive volume is to price in your own data, then run the scenarios.

The decision it informs

Whether to change price or pack size, by how much, and on which products and channels.

Why a dashboard cannot answer it

A dashboard shows last year's price and volume. It cannot tell you how volume would respond to a different price, because that response is not in a total. It has to be measured from past changes.

What we ask in the first week

The questions behind the question.

  • Which price changes in the last few years can we learn from?
  • What else changed at the same time: promotions, competitors, distribution?
  • Which products and channels matter most?
  • What is the limit you would not cross, on volume or share?
Data we would look at
Sales by SKU, channel and monthPrice lists and discount historyPromotion calendarUnit costsMarket or competitor price points where available
How we would analyse it

Methods, chosen for this question.

Price elasticity modelHow much volume moves for each 1% move in price, by product and channel, with a range.
Price, volume and mix bridgeHow much of past margin movement came from each.
Scenario modelChange price, cost and promotion together and see profit, margin and volume.
  1. 01Scope
  2. 02Immerse
  3. 03Analyse
  4. 04Test the evidence
  5. 05Read out and hand over
What you would get

Findings you can act on.

An elasticity tableFor each product and channel, how sensitive volume is, and how sure we are.
A price mapWhere there is room to raise price, and where it would cost volume faster than it adds margin.
An interactive scenario modelYours to keep and run, with the assumptions in plain view.
How a driver ranking readsSchematic, no values
Each bar is the size of a factor's effect and the marker is the range around it. In a real deep dive both come from your data.
Scenarios you could then run

Ask what-if, on your own numbers.

  • What if price rises 3% on the top ten products?
  • What if promotion depth is cut by a quarter?
  • What if input costs rise and we hold price?
Try a what-if playground →
More investigations

Is this your question?

Tell us the decision you are trying to make. We will say whether a deep dive is the right way to answer it, and what it would take.

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