What kind of data is required to use the Price Elasticity skill?

Effective analysis requires historical data of price points and corresponding volumes, ideally spanning 3-6 months, to account for external factors like seasonality and competition.

How does this skill help with SaaS pricing strategies?

It helps identify if your product tiers are inelastic (where customers are less sensitive to price) or elastic (where they are highly sensitive), allowing you to raise prices for premium features while keeping entry points affordable.

What is Price Elasticity of Demand (PED)?

PED is an economic measure that quantifies how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity divided by the percentage change in price.

Can this skill be used for dynamic pricing?

Yes, the framework provides a process for monitoring real-time elasticity signals, such as competitor moves and seasonal demand, to adjust prices dynamically like airlines and hotels.

Price Elasticity Analyzer

Name: Price Elasticity Analyzer
Author: lev-os

bylev-os

0•

E-commerce Solutions

Optimizes pricing strategies by measuring demand sensitivity and calculating the revenue impact of price changes across market segments.

The Price Elasticity skill equips Claude with a rigorous economic framework to transform pricing from guesswork into a data-driven science. It enables the analysis of Price Elasticity of Demand (PED) to determine whether raising, lowering, or maintaining prices will maximize total revenue. By guiding users through market segmentation, historical data calculation, and the identification of optimal price points, this skill helps businesses identify price-insensitive 'inelastic' segments for margin expansion and 'elastic' segments for volume growth. It is particularly useful for SaaS companies, e-commerce retailers, and service providers looking to implement sophisticated revenue management strategies similar to those used in the airline and hotel industries.

Key Features

010 GitHub stars

02Analyzes cross-elasticity to understand how pricing affects substitute and complementary products.

03Evaluates the long-term revenue impact of discounts, promotions, and dynamic pricing shifts.

04Segments customer bases into elastic (price-sensitive) and inelastic (price-insensitive) groups.

05Calculates Price Elasticity of Demand (PED) coefficients from historical sales and pricing data.

06Identifies the optimal price point where marginal revenue is maximized relative to marginal cost.

Use Cases

01Optimizing e-commerce discount levels to ensure promotions drive volume without destroying margins.

02Designing tiered pricing structures for new products based on market-wide willingness-to-pay analysis.

03Determining the potential revenue and churn impact of a planned SaaS subscription price increase.

What are Skills?·How to Install

Install with 🐟 Skill.Fish

npx skillfish add lev-os/agents price-elasticity

For use in Claude.ai and ChatGPT

Download Skill