PED < 1 → You’re selling too cheaply, so price drives revenue.
PED > 1 → You’re selling too expensively, so customers drive revenue.
PED = 1 → You’re selling at the right price.
(2/2)
PED > 1 → You’re selling too expensively, so customers drive revenue.
PED = 1 → You’re selling at the right price.
(2/2)
December 23, 2025 at 2:01 PM
PED < 1 → You’re selling too cheaply, so price drives revenue.
PED > 1 → You’re selling too expensively, so customers drive revenue.
PED = 1 → You’re selling at the right price.
(2/2)
PED > 1 → You’re selling too expensively, so customers drive revenue.
PED = 1 → You’re selling at the right price.
(2/2)
I don’t know, maybe I’m the one who’s wrong.
But, even they’re wrong, they can be fixed. The most important thing is to understand the concept and its rule of thumb:
(1/2)
But, even they’re wrong, they can be fixed. The most important thing is to understand the concept and its rule of thumb:
(1/2)
December 23, 2025 at 2:01 PM
I don’t know, maybe I’m the one who’s wrong.
But, even they’re wrong, they can be fixed. The most important thing is to understand the concept and its rule of thumb:
(1/2)
But, even they’re wrong, they can be fixed. The most important thing is to understand the concept and its rule of thumb:
(1/2)
The numbers make sense, good job!
However, could you review the price elasticty for 2025? I don’t think it can be THAT high.
I just calculated it myself and got ~0.99, which is consistent with previous years and proves that your theory is correct.
However, could you review the price elasticty for 2025? I don’t think it can be THAT high.
I just calculated it myself and got ~0.99, which is consistent with previous years and proves that your theory is correct.
December 23, 2025 at 12:03 PM
The numbers make sense, good job!
However, could you review the price elasticty for 2025? I don’t think it can be THAT high.
I just calculated it myself and got ~0.99, which is consistent with previous years and proves that your theory is correct.
However, could you review the price elasticty for 2025? I don’t think it can be THAT high.
I just calculated it myself and got ~0.99, which is consistent with previous years and proves that your theory is correct.
This is called price elasticity.
Calculate the % change in commissions, then calculate the % change in sales. Divide the former over the latter, then take the absolute value.
If the result is ≥1, then revenue is/was more impacted by commissions than by price per commission in this/that period.
Calculate the % change in commissions, then calculate the % change in sales. Divide the former over the latter, then take the absolute value.
If the result is ≥1, then revenue is/was more impacted by commissions than by price per commission in this/that period.
December 22, 2025 at 9:12 AM
This is called price elasticity.
Calculate the % change in commissions, then calculate the % change in sales. Divide the former over the latter, then take the absolute value.
If the result is ≥1, then revenue is/was more impacted by commissions than by price per commission in this/that period.
Calculate the % change in commissions, then calculate the % change in sales. Divide the former over the latter, then take the absolute value.
If the result is ≥1, then revenue is/was more impacted by commissions than by price per commission in this/that period.