December 2021
Beginner to intermediate
1168 pages
30h 17m
English
book
Microsoft Excel Data Analysis and Business Modeling (Office 2021 and Microsoft 365), 7th Edition
by Wayne Winston
Content preview from Microsoft Excel Data Analysis and Business Modeling (Office 2021 and Microsoft 365), 7th Edition
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Chapter 92
Nonlinear pricing
Questions answered in this chapter:
How can bundling increase profitability?
How can I find a profit-maximizing nonlinear pricing plan?
Chapter 90, “Pricing products by using tie-ins,” and Chapter 91, “Pricing products by using subjectively determined demand,” showed you how to determine a profit-maximizing price for a product. The examples in those chapters assume that no matter how many units a customer purchases, the customer is charged the same amount per unit. This model is known as linear pricing because the cost of buying x units is a straight line function of x; namely, cost of x units = (Unit Price) * x. As you will see in this chapter, nonlinear pricing can often greatly increase a company’s profit.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.