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Our software will soon smooth the jags out -- but for now, you should do this in
“your mind's eye.” Watch for these false peaks in the following line graphs...
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Make Your Price Sell!
8 1
• Gross Dollar Sales vs. Price
• Gross Profit Sales vs. Price
• 3-in-1 Composite.
4.2.1. Line Graph #1... Unit Sales vs. Price
(“Price-Resistance”)
The “Unit Sales vs. Price” line graph displays your product’s “priceresistance”
(also called “price sensitivity”). It shows how demand reacts to
changes in the price...
On the x-axis, price points increase in dollar value from left to right. The y-axis
shows the number of sales that you would make for every 100 survey
respondents, at each price point. It’s derived by...
... a complex mathematical formula that is performed upon each
respondent’s data. Through a combination of multiple regression, calculus, and
probability/game theory, it calculates the exact number of units that you
will sell at each and every price point along the x-axis.
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Make Your Price Sell!
8 2
See how the graph slopes down from left to right? As we said, demand
decreases as price rises. See how the graph above starts a steep slope
down at about $20? You’re entering a zone of “price-sensitivity” where you
lose unit sales rapidly as the price increases. This slope starts becoming fairly
horizontal at about $150 -- that’s where you can increase price without losing
much in unit sales (price-insensitive).
What’s the best way to use this chart? If you’re planning a low-priced, highvolume
approach, study the lower price points. Planning to top price? Look at
the other end. ( See Price to Win (above) for details about these