Provided Elasticity Analysis for a Laundry Machinery Manufacturing Client

The Client

The client, serving as the Senior Vice President for Strategy and Innovation at a leading commercial laundry manufacturer, played a pivotal role in a key industry space. Renowned for producing top-tier commercial and residential washers and dryers, the manufacturer faced challenges in pricing strategies.

Client Requirements

The client sought our expertise to perform a comprehensive elasticity analysis to assess the revised pricing for their machinery products. The analysis aimed to aid in their critical business decisions and help them identify the optimal pricing strategy for their offerings.

Project Challenges

During the engagement, we encountered the following key challenges -

• Limited Information Availability -

  The lack of extensive information at the client's end made it difficult to assess the viability of revised pricing structures.

• Sales Volume Uncertainty -

  The client expressed concerns about the potential drastic decrease in sales volume, necessitating careful pricing strategies.

Our Solution

To address these challenges and meet the client's requirements, we implemented a business solution encompassing the following steps -

• Extensive Elasticity Analysis -

  Our team conducted an in-depth elasticity analysis for various machinery products and models, enabling us to understand customer behavior in response to price changes.

• Data-driven Files -

  We created comprehensive files, including elasticity values, demand curves, and price increase ranges for different demand decrease scenarios (0-5%, 6-10%, 10-15%), providing valuable insights for decision-making.

• Demand Forecasting -

  Leveraging average elasticity and unit price change, we accurately forecasted the demand, empowering the client to plan strategically.

• Assumption Validation -

  Our thorough studies validated key assumptions, ensuring the accuracy and reliability of the analysis.

The Result

Our efforts culminated in the delivery of actionable insights and valuable deliverables to the client -

• Comprehensive Elasticity Models -

  We provided the client with detailed reports containing various elasticity models to guide pricing decisions effectively.

• Value Capture Strategy -

  The client was equipped to capture maximum value among their customers with the help of our study, leading them to confidently implement product price increases.

Outsource Research and Analysis Services to Us

At O2i, we specialize in delivering tailored solutions to address complex business challenges. Our team of experts is proficient at providing Research and Analysis services, including conducting elasticity analysis and optimizing pricing strategies for enhanced profitability and growth.

Access growth potential and gain a competitive edge in your industry by reaching out to us today!