Glossary
Price elasticity
Price elasticity measures how much the quantity sold changes when an item price changes; if it changes a lot, the item is elastic.
What it means for a shop owner
Staples like bread are inelastic, so buying hardly changes with price. Luxuries are elastic, so a small discount can double sales. Try a small change for two weeks and watch the quantity.
A worked example
You cut a perfume from 40 to 36 and weekly sales rose from 10 to 16: 576 instead of 400. The item is elastic.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes