Price elasticity: A short primer

In various blog posts, I have asked the readers to base their pricing decisions on elasticity. In this post, lets try to understand the term better.

Lets start with a mental exercise. Imagine you increase the price of your product by 1%. What happens next?
Continue reading Price elasticity: A short primer

How to price during recession ?

Periodic recessions have become a fact of life.

During a recession, there is a broad based collapse in demand and an excess inventory. In general, the companies start reducing prices during recession. Since the competitors use the same methods, such a strategy is mostly ineffective. Continue reading How to price during recession ?