Price Sensitivity Analysis

Price sensitivity analysis explores how customers' willingness to buy may change at different price levels. A cleaning company could use historical quote acceptance, customer interviews, and controlled offer tests to understand where price creates resistance. Results can be distorted by changes in service scope, season, location, or how an offer is presented. The exercise should not be treated as proof that all customers will respond alike or that raising prices will always increase revenue. It differs from competitor pricing analysis, which examines other businesses' published offers. A useful assessment considers perceived value, costs, margins, and the business's ability to deliver consistently.