How much volume could we lose after a price increase?
Estimate expected demand response by product, channel, customer or geography instead of relying on a single portfolio average.
Price Elasticity Modelling · Pricing Decision Intelligence
Know what happens before you change the price.
Measure how demand responds to price changes by SKU, customer, channel or region, then compare the revenue, margin and volume consequences of feasible pricing moves.
Questions this model answers
Price response at the level where the business actually acts.
Which SKUs have room to increase price?
Identify products where price sensitivity, margin and competitive context support a stronger pricing move.
What happens to revenue and margin?
Translate demand response into scenarios so the commercial team can see the economic consequence of each feasible change.
Will demand switch to another product?
Model cross-price effects, substitution and cannibalisation where the data can credibly support them.
From historical data to a pricing decision
Price is one driver among many.
Graphite Note separates price response from the other factors that can move demand so the final pricing recommendation is based on a more credible view of what changed and why.
Sales + price + context
Sales, units, price, promotions, distribution, stock, seasonality, channel, geography and relevant external variables.
Estimate demand response
Model own-price and, where supported, cross-price response while accounting for other demand drivers.
Compare feasible price moves
Simulate expected volume, revenue and margin under candidate prices and commercial constraints.
Recommend the pricing move
Return the price range or action with expected impact, assumptions and evidence the commercial team can review.
Not one elasticity number
Elasticity can change by SKU, channel, region and customer.
A single number can hide the exact variation that matters commercially. Graphite Note models the decision at the level where there is enough evidence to support it and makes uncertainty visible where the data is thin.
When the question is about whether a promotion caused incremental sales rather than how demand responds to price, use a causal design instead. See promotion effectiveness and incrementality.
Estimate demand response
Forecast how units or volume are likely to move under candidate prices.
Control for confounding where needed
Separate price from promotions, distribution, seasonality and other variables that can distort the relationship.
Choose among feasible prices
Compare margin, revenue, volume and commercial constraints before recommending the move.
Direct answers
Questions buyers ask about price elasticity.
How much data do I need for price elasticity modelling?
There is no single minimum. The useful amount depends on how often prices change, the level of seasonality, the number of SKUs and channels, and whether there is enough variation to separate price effects from promotions and other drivers.
Can you estimate elasticity when prices rarely change?
Sometimes, but the evidence is weaker when there is very little price variation. Graphite Note will make that limitation explicit rather than manufacture false precision.
Can promotion effects be separated from base-price effects?
Yes, when the available data supports it. Promotion flags, discount depth, distribution, seasonality and other relevant drivers can be modelled separately so price response is not confused with promotional lift.
Can elasticity be calculated by SKU, channel or region?
Yes, where the data is sufficiently rich. Elasticity can differ materially across products, channels, customers, regions and time, so a single portfolio-wide number is often too crude for a pricing decision.
What is the difference between price elasticity and price optimisation?
Elasticity estimates how demand responds to price. Price optimisation uses that response together with margin, constraints and commercial objectives to compare feasible price actions.
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Bring the pricing decision, not just the dataset.
We will structure the model around the products, markets, constraints and economic outcome you actually need to optimise.