Price Elasticity Analysis

Any decision to modify the wholesale price of a product carries huge implications in terms of the short and mid-term profitability of the company. With so much on the line, a Price Elasticity study by TABS Group greatly improves the odds of making the right decision so that you do not put your business at risk. There are significant differences in the TABS approach for these studies vs. other options:

The TABS Price Elasticity model is the only one in the industry that uses an Accurate Baseline model of non-promoted sales. Without an accurate estimate of baseline sales, the accuracy of the entire analysis is completely compromised.

Our model used aggregated, chain-level data, not store-level data. This lowers the cost of the analysis, reduces the turnaround time, and improves the accuracy of the analysis.

TG creates separate price elasticity estimates for each retailer, unlike other models that pool observations across retailers. By failing to distinguish pricing dynamics by retailer, we fail to account for key factors like differences in distribution, category development, and regional preferences.

TABS Group analyses are firmly grounded in microeconomic foundations and principles. TABS Group consultants are experts in econometric modeling, and therefore will not deliver conclusions that are theoretically impossible…unlike competitive models.