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BREAK-EVEN ELASTICITY

For high-margin SKUs, which is more likely to grow profit?

Break-evens differ by variable margin:

Decrease Price?

If drop price by 4%,

sales must increase more than 7% to grow profit.

Break-even elasticity of -1.75 (i.e., 7/-4)

B2B:  Possible

B2C:  Possible

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Change in Price
Break-even change in sales

Increase Price?

If raise price by 4%, sales must decline less than 6% to grow profit.

Break-even elasticity of -1.5 (i.e., -6/4)

B2B:  Possible

B2C:  Possible

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