Understanding the Price Curves
The price curves display information about unit volume, profit, and revenue in response to pricing changes.
The Blue curve in the graph represents how a product’s unit volume will respond to various pricing actions.
The Red line on the graph represents how a product’s profit (Gross Margin $) will respond to various pricing actions. This is based on the product’s cost at the time of the last model.
The Green line on the graph represents how a product’s revenue will respond to various pricing actions. This is based on the product’s average scan price at the time of the last model.
Examples
Copyright IBM Corporation 2016. All Rights Reserved.
