202401090807 Status: #idea #🧠 Tags: #game-theory #business #economics # Pricing Tactics If we have 150 potential buyers who have a spread of prices they are willing to pay (threshold), and we want to maximise our profits, what is the best price? Will be something like - Size of Margin (m) x Number of Sales (n) - We can assume that the lower the price, the more sales we’ll get. - Conversely, the lower the price, the smaller the margin. - We can set a minimum price of 2x Cost (50% GPM), which is ($2487 x 2 = $4974) - Let’s assume that at $5k we will capture 80% of our potential buyers - =150 x .8 x 2487=$298,440 GPM - At 7.5k we will capture 70% of our potential buyers = $526365 - At 10k we will capture 50% of our potential buyers = $563475 - At 12.5k we will capture 35% of our potential buyers - At 15k we will capture 20% of our potential buyers - At 20k we will capture 10% of our potential buyers --- # References -