September 09, 2019

Simplified Pricing Brands

Take demand from the past year. After weighting by demand, create a frequency distribution of 1/3rd / 1/3rd / 1/3rd price points.

Then create a variable in your database ... low = bottom third of price points, average = middle third of price points, high = high third of price points.

Finally, sum annual demand for the past five years.

Look at the table here ... tell me what you observe. We'll discuss the table tomorrow.

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