This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/flevypro/price-sensitivity-analysis-excel-model-1809 DOCUMENT DESCRIPTION This is a price sensitivity model built in Excel. It includes a section to input all your pricing assumptions (e.g. pricing elasticity) and then the sensitivity analysis output. It is the supplemental document for the Pricing Strategy Framework available on the Flevy marketplace. ABOUT FLEVYPRO FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.

1. SENSITIVITY MODEL
THIS EXAMPLE CREATED BY
LEARNPPT.COM
INPUTS/ASSUMPTIONS
Total Possible Score 15
Lowest Possible Score 5
Price Elasticity Score 13
Elasticity Factor Upper Bound 150%
Point of Perfect Elasticity 12
Threshold of No Elasticity 5.50%
Calculated Elasticity Factor 117% This is formulaically derived.
e.g. If you picked 5 Price
Sensitivity drivers, the total
possible score would be 5*3 =
15
This value must be less than the
Total Possible Score
e.g. If you picked 5 Price
Sensitivity drivers, the lowest
possible score would be 5*1 = 5
This value must be greater than
100%

2. SENSITIVITY ANALYSIS
Pricing Change (%)
-50.0%
-47.5%
-45.0%
-42.5%
-40.0%
-37.5%
-35.0%
-32.5%
-30.0%
-27.5%
-25.0%
-22.5%
-20.0%
-17.5%
-15.0%
-12.5%
-10.0%
-7.5%
-5.0%
-2.5%
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
20.0%
22.5%
25.0%
27.5%
30.0%
32.5%
35.0%
37.5%
40.0%
42.5%
45.0%
47.5%
50.0%
Effective Demand Change (%)
25.7%
22.8%
19.8%
16.9%
14.0%
40.3%
37.3%
34.4%
31.5%
28.6%
51.9%
49.0%
46.1%
43.2%
11.1%
8.2%
-16.9%
2.3%
0.0%
0.0%
0.0%
0.0%
0.0%
-2.3%
-5.3%
-8.2%
-11.1%
-14.0%
5.2%
-51.9%
-19.8%
-22.8%
-25.7%
-28.6%
-31.5%
-34.4%
-37.3%
-40.3%
-43.2%
-46.1%
-49.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
-50.0%
-47.5%
-45.0%
-42.5%
-40.0%
-37.5%
-35.0%
-32.5%
-30.0%
-27.5%
-25.0%
-22.5%
-20.0%
-17.5%
-15.0%
-12.5%
-10.0%
-7.5%
-5.0%
-2.5%
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
20.0%
22.5%
25.0%
27.5%
30.0%
32.5%
35.0%
37.5%
40.0%
42.5%
45.0%
47.5%
50.0%
Pricing Change
Effective Demand Change
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http://flevy.com/browse/flevypro/price-sensitivity-analysis-excel-model-1809

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