Pricing & Profitability Analysis

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Calculate how much volume a price cut must win, and how much a price rise may lose, before profit gets worse.
• Walk one dealer deal down the price waterfall, from list price through on- and off-invoice leakages to the pocket price and pocket margin.
• Price the Mill Pro grinder twice, by full cost plus markup and by economic value to the customer, and measure the money left on the table.
• Turn a demand table into revenue, contribution and profit, find the profit-maximising price and measure the arc elasticity.
• Calculate contribution by product, allocate order-handling and support costs by activity, and find the products that lose money once fully loaded.
• Add cost-to-serve to each customer's gross margin, rank customers by profit with a cumulative curve and read the peak of the whale curve.
• Test two promotions on the Barista Kit: the volume each needs to break even, the lift that implies, and the profit at the forecast volume.
• Price dealer orders from a volume tier table with an approximate-match XLOOKUP, then work out the discount and margin of a bundle.