POS Data Collection & Analysis

Earnings Earnings Retail Sales Housing Market Retail Sales Home Sales EDI 852 Consumer Confidence EDI 852 Retail Spending Home Depot Consumer Confidence Home Depot Labor Market Retail Economic Index Domestic Retailers Lowe's Walmart supply chain Lowe's POS reporting Walmart Macy's Holiday shopping Retail Spending Macy's Economic Forecast Supply Chain Kohl's Dollar General Increasing Sales Acquisitions Dollar General Family Dollar Family Dollar pos reporting Retail Sales Figures Accelerated Analytics consumer spending Forecasting Kohl's Nordstrom retail National Retail Federation Retail Announcement Target Dillards Dollar Tree Inventory Management Sears Target Nordstrom NRF Dollar Tree Executive Appointments Manufacturing Index out of stock Retail Executives weather analysis Costco JC Penney Costco Dillards JC Penney POS Analysis Amazon Home Improvement Omnichannel Retail Forecast Walgreens Accelerated Analytics Customer Satisfaction CVS Fred's Fred's Holiday Sales online shopping out of stock Sears Walgreens CVS home improvement retailers Inventory Management JC Penney's JCPenney omnichannel department stores Digital Retail Dillard's Forecasting Hudson's Bay Rite Aid Rite Aid Wal-Mart Wal-Mart Census DIY fourth quarter sales GDP GDP Hudson's Bay in stock Lowes Macys NRF Survey Office Depot Retail Link Retail Link Saks Saks Staples Supply Chain Metrics acquisition Belk brick and mortar retail stores Census Collaboration consumer buying behavior Increasing Sales Manufacturing Office Depot OfficeMax retailers stocks Sell-Thru Sell-Thru Sephora Staples 2014 Holiday Sales apparel industry Belk Bon-Ton Category Management comparable sales increase consumer shopping behavior Customer Satisfaction Economy Gap Holiday Season Housing Market Inventory IT Spending JC Penney's Kohls Kroger manufacturing POS data Retail POS retail pos reporting same store sales us economic growth 2013 Holiday Sales 2014 Holiday Sales Amazon Amazon Prime Ascena Beauty Industry Best Buy Black Friday consumer expectations consumer saving cyber monday Digital Retail DIY DIY market Easter eCommerce Fossil Gap GMROI holiday spending home building Home Depot Inc IT Spending key performance indicators for retail Macys Online slales personal finances Retail growth retailers Rona Sales sales growth second quarter earnings stock market Store Closures Supervalu Terry Lundgren The Home Depot Ulta Ulta US Dollar 2015 sales forecast 2016 Holiday Sales Albertsons Amazon.com Anastasia Apparel Sales Ascena Beauty Vendors Big Lots Bon Ton business intelligence in retail Canada CConsumer Confidence coalition loyalty prorgam Collaboration Consumer Holiday Spending Survey consumer optimism Consumer Spending Report CPFR customer experience DDSN Disney earnings per share e-commerce economic growth expansion Fed Fossil Growth GXS health and beauty home price appreciation household improvements Housing construction Hudson Bay In Stock In-Store Sales Inventory Shrink J.C. Penney JCPenney Co Inc job cuts job growth labor market LLowes Lord & Taylor Lowe's Home Depot Major Retail Chains Mother's Day shopping Nation Retail Federateion National Hardware Show OfficeMax Online Apparel online returns online sales Price Waterhouse Cooper product assortment quarterly earnings rebounding housing market refund money Retail Blog retail expansion Retail Industry Retail Reporting retail survey Retail Trends Ross Stores Safeway Sales Strategy Sam's Club Sam's Club Sell-Through Sephora SKU Analysis social networking specialty stores spring sps commerce stock decline Store Closures suppliers Swarovski Tax Return technology The Gap The National Association of Home Builders Toys R Us Tractor Supply Tractor Supply Trade Promotion U.S. Economy US Bureau of Labor Statistics US consumer confidence US housing US Spending monitor Vera Bradley wage growth Weeks of Supply Whole Foods 2014 sales 2015 2016 Holiday AAFES AAFES Ace Hardware Ace Hardware ACSI afterBOT agile technology Air Force Albert Liniado Alberta Amazon Echo Amazon Membership Amazon Prime Monthly Amazon Stock Price American Express anti-aging products aparel returns apartment construction Apparel Fit Apparel Sizing Army Asia-Pacific market Auction Auction.com back to school Bank of America Merrill Lynch Bankruptcy Barnes & Noble baseball Bealls Big Show Bipartisan Congressional Trade Priorities and Accountability Act of 2015 BJ's BJ's Blogroll Bloomingdales Bloomingdales Bluemercury body care Bon-Ton branding Branding Brands Mobile Commerce Index brick and mortar stores Briitish Columbia Build vs. Buy building permits Bull Whip Effect Bullwhip Effect business investment buying conditions Calculating Sell-Through Calculating Sell-Thru California market research Canadian Tire Capital Business Credit Category Management category management in retail CEO Confidence chief information security officer chocolate sales Christmas Christmas creep Circuit City CISO Classroom Retail clothing CMO Commissary consumber price index consumer caution Consumer Fuels survey Consumer price index Consumer survey Contribution Cost Comparison Cost of Storm costs Coty CPFR CPG curbside pickup custom catalogs data protection delayed merchandise shipments Deloitte annual holiday consumer spending survey demand demand driven demand driven planning Demand Driven Supply Chain demand planner demand planning demographic growth demographic trends Department of Energy desktop spending Dick's Sporting Goods digital channnel Digital Garage Discount Retailers discretionary spending Disney Dollar Tree Growth Doug McMillon early season deals earnings decline earnins forecast Easter Sales ecommerce expert Economic Health e-coomerce ECR. efficient consumer response employment rates energy efficiency Energy Star Parttner Estee Lauder Exxon Mobile's Facebook fashion trends favorite retailer Fed FedEx first quarter sales fiscal year Fittery Fittery.com Flipside Foot traffic forecast foretelling construction Free Two-Day Shipping French gas prices general merchandise GfK global competitiveness Global Retail Manufacturers and Importers Survey GMROI go to market strategy Goldman Sachs graduation gifts graduation spending grand bazaar shops Gucci Guess H & M H&M Halloween forecast Halloween retal sales hardlines healthcare Hershey and Mars hhome improvement retailers High Hire employees holiday season hiring home depot link Home Depot Mobile app Homedepot.com homedepotlink Homeowners household expenses housing recession HRC Advisory Hudson Bay hurricane Hurricane Erika import cargo imports In A Snap Industrial Production inlation innovation lab in-store analytics In-Store Partnership Interline Brands Inc International Council of Shopping Centers InterTrade inventory to sales ratio Investor Conference Call IPO IRI J.C. Penny J.Rogers Kniffen Jan Kniffen JCP JDA JDA Software Group Jonas Jouviance Kate Spade Kmart Kroger labor regulations leading economic index LIRA lLowe's logistics Logistics Companies L'Oreal lower gas prices lowe's business credit Lowe's Canada Lowe's Home Improvement Lowesforpros.com loyalty programs luxury brands LVMH Macys Marketplace Macy's net income Macy's shares mall Malls manufacturing index marketing marketing strategies Mary Lou Kelley Mavcy's merger Metrostudy Mexico Mike Duke military resale military retail millenials Millennial mobile sites Mobile Video MRO multi-family units National Association of Realtors national economy net eranings net sales increase New Home Buyers new job creation New StoresDeep Discount Retailers NNational Retail Federation Nordstrom Rewards accounts North American Retail Hardware Association off-price retailers Old Navy Onatrio online commerece online ordering online revenue online spending oomnichannel OOS OpenText operational efficiency Outsourcing Overregulation P&G Pending Home Sales Index Performance Sports Group Personal Accessories pharmacy plan o gram Planalytics plenti program POG Port Gridlock pos reports Prada pre-production inventories previuosly owned homes price elasticity Prince index private label Proctor & Gamble professional customers profit Promise Organic purchase behaviors Purchasing Manager's Index purchasing reports Q3 earnings quarterly sales forecast Quebec Rate the economy Recession requisition lists Retail Analysis retail analytics Retail Companies retail concept retail continuity planning retail dashboards Retail Data Retail Industry Leaders Association retail jobs Retail marketing retail news retail out of stock retail partnership Retail POS data retail replenishment retail results Retail Returns retail sales growth retail spending index retail store Retail Traffic retail trens return data RMHC Ronald McDonald House Charities Roony Shmoel Ross Stores sales decline sales drop sales traffic same-store comparison Saskatchewan SBT Scan Based Trade school supplies security Sell-through infographic Sell-Thru infographic Sell-Thru percentage shipment delays shipping rate incraese shipping rate increase ShopKo ShopKo Short-term interest rates showroom shrink Single-Family Homes single-family housing markets single-family units skincare slowing tourism Sluggish Retail Traffic Small Business Small Business Owners smartphones Snapchat Soars Southern Living specialized retailers Sporting Goods Sports Authority Spring Balck Friday Spring Sales St Patriicks Day Staffing Staffing Agencies Staffing CHallenges Stage Stores Stock stock out Store Expansion store pickup store repositioning store traffic store walk Storm Impact Strategy supplier lead times supply Swarovski Sycamore Partners tablet targeted collaboration technology spending Terry Lundgren Thanksgiving weekend shopping The Farnworth Group The National Retail Federation The US Census Bureau The US Environmental Protection Agency TJX companies total digital transformation tourism Trading partner portals transactions transportation delays Tropical Storm Erika Twitter Twitter Ulta Baeuty Unemployment rate United Parcel Service UPS US Census Bureau reports US Consumer sentiment US Dollar exchange rate US Labor Costs US Postal Service US Spending index value retailers Vanity Capital Vera Bradley Vera Bradley Inc Von Maur Von Maur Voxware w Walmart revenue Decline Warehouse workers watches Weak Retail Traffic webroom Westfield Wilma Schumann winter holiday Winter Storm Worldwide Enterprises WOS Year-End Sales
LATEST BLOG POSTS
Blog Index
The journal that this archive was targeting has been deleted. Please update your configuration.
Navigation
« Analyzing Walmart Retail Link POS Data | Main | Calculating Sell-Thru »
Monday
Feb062012

Calculating Price Elasticity

Show of hands, how many of you know how to calculate price elasticity?

Well, if you are like me, you know the general concept but the math is a bit rusty. So, here is a quick and dirty refresher. Price elasticity is a measure of how demand for a product is influenced by price changes. This measure can help determine whether to change the price of products by calculating what effect price changes have on the quantities customers purchase.

Price elasticity can help to answer questions like: If I increase my unit price by 20%, how much unit sales volume will I lose? If I lower my unit price by 10%, how much unit sales volume will I gain?

To calculate the price elasticity (PE) PE = [(Q2-Q1) / ((Q1+Q2) / 2 )] / [(P2-P1) / ((P1+P2) / 2]

Where Q1 = initial quantity; Q2 = final quantity; P1 = initial price; P2 = final price

Understanding the calculation results:

If the PE > 1, the product is relatively elastic.  An increase in price would result in a decrease in revenue, and a decrease in price would result in an increase in revenue. If the PE < 1, the product is relatively inelastic. An increase in price would result in an increase in revenue, and a decrease in price would result in a decrease in revenue.

References (48)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: Payday Loans
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: acid reflux diet
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: product
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: systèmes de paris
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: systèmes de paris
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: pelangsing tubuh
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: Gamis Modern
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: hypothyroidism
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: Steve Jacob
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: Steve Jacob
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: xovilichter
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: website link
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: dog walking Sydney
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: D D Photographics
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: acorntown.com
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: porn memberships
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: Click Link
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: sohoearn
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: Full Document
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: your input here
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: furniture
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: qwe4
  • Response
    Response: click here.
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: followshops.net
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity
  • Response
    Response: furniture
    EDI 852 / POS Reporting - Accelerated Analytics Blog - Calculating Price Elasticity

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>