NewWeather Demand Modelling is live. Forecast demand before it arrivesWeather Demand Modelling is live →
Price Elasticity Analysis

How much price can your margin carry?Find the price that maximises contribution, before volume bleeds.

Price elasticity analysis models how demand responds to price, by product, category and segment, so you can see the contribution margin at every price point. Raise where you have headroom, hold where you do not, and never guess at a discount again. Measured in CM1, not revenue.

Book a demo ↗See the model
Margin-native pricing from the award-winning team behind 100+ brands and operators
PanasonicRainCoCheapest LiquorKing CoolingAuto ComfortiHeat & CoolAACAEInsider Experience SportsInterosPeter JacksonLa TrobeToy WorldForesightOncoreMindshopSurface SpectrumNAWTeafyEZI TagPanasonicRainCoCheapest LiquorKing CoolingAuto ComfortiHeat & CoolAACAEInsider Experience SportsInterosPeter JacksonLa TrobeToy WorldForesightOncoreMindshopSurface SpectrumNAWTeafyEZI Tag
Purest SolutionsCuratedVoir VodkaSwing & ServeNewLeafNavigataFirst EnergyHaldatecSirius GreenElite ElectricalMobile SkipsBrowedAsenoMGIDCRebateM8TMJ TutoringAcademic TutorsUCSPurest SolutionsCuratedVoir VodkaSwing & ServeNewLeafNavigataFirst EnergyHaldatecSirius GreenElite ElectricalMobile SkipsBrowedAsenoMGIDCRebateM8TMJ TutoringAcademic TutorsUCS
How it reads

Contribution margin at every price point.

The model maps contribution margin across the price range and marks the margin-maximising point. Each category has its own elasticity, so each peaks in a different place.

Price elasticity · contribution-margin responseDemonstrative data
Contribution margin at every price · core range
BestToday
-20%Price change+20%
$58.75+18%
Margin-maximising price · today $50.00
Contribution
+12%
vs today
Volume
-24.5%
fewer units
Price headroom
+18%
to the peak
For the core range, the model puts the margin-maximising price at +18%, worth about +12% contribution margin, even after a -24.5% drop in volume. That is real headroom to raise.
Headroom

Most catalogues are underpriced somewhere.

When customers are less price-sensitive than you assume, you are leaving margin on the table. The model finds the margin-maximising price within a sensible band and shows the gap between where you price today and where contribution peaks, so a price increase becomes a quantified decision.

  • The peak, not a guess. The contribution-maximising price, per line
  • Quantified headroom. How far you can move before volume bleeds margin
  • In CM1. Net of true cost, never revenue-flattered
Margin headroom · core rangeDemonstrative data
+17.7% price headroom
to the margin-maximising price
Today$50.00 · CM1 $180,000
Margin-maximising$58.85 · CM1 $202,000
Volume impact-24.8% units
Net effect+12% CM1
Not one rule

Elasticity differs by line and by segment.

Premium buyers barely flinch at a price move; value shoppers walk at the first cent. Applying one pricing rule across the catalogue leaves margin on the table in some lines and kills volume in others. We estimate elasticity by product, category and segment, so every price decision fits the demand behind it.

  • Premium. Low elasticity, real room to raise
  • Core. Moderate, a measured headroom to a clear peak
  • Value. High elasticity, protect volume, hold the line
Elasticity by categoryDemonstrative data
Premiume -0.8
Core rangee -1.4
Valuee -2.2
Lower elasticity means more pricing power. Premium has room to raise; value should hold the line.
Works with

Part of the same engine.

Price is a lever the rest of your Blufire capabilities depend on.

Capability
Marketing Mix Modelling
Price is one of the drivers the mix model controls for before crediting any media with incrementality.
Companion →
Capability
Segment Insights
Elasticity by segment, so pricing power is read against who is actually buying.
Lens →
Capability
Board Packs & Custom Reporting
Put the headroom and elasticity curves straight into the board pack.
Report →
The team behind it

Built by an award-winning analytics team.

Blufire is trusted by 100+ mid-market and enterprise brands and operators, and recognised across the APAC and Global Search Awards. The same people now model your pricing.

100+
Brands & operators
$5M-$1B
Turnover served
4
Industry awards
100 Fast StartersAPAC Search Awards 2025 WinnerGlobal Search Awards 2025 FinalistGlobal Agency Awards 2025 Finalist
Questions

The things buyers ask.

It tells you how demand responds to price: for a given price change, how much volume moves, and what that does to contribution margin. The output is the contribution margin at every price point, so you can find the price that maximises margin rather than revenue or volume.
No, and that is the point. Premium lines, core ranges and value lines respond very differently. We estimate elasticity by product, category and customer segment, so you raise where you have headroom and hold where you do not, instead of applying one blunt rule.
Yes. We estimate elasticity from your existing price and volume history, including the natural price variation from promotions and changes over time. Where you do want to test, the model frames the experiment and reads the result.
A price rise can lift revenue while quietly thinning margin, or a discount can grow volume while destroying it. Contribution margin is the only honest measure of whether a price move made you money. Every figure here is in CM1, net of true cost.
Yes. The model identifies the margin-maximising price within a sensible band and shows the headroom between where you price today and that point, so a price increase becomes a quantified decision, not a guess.
Price is one of the levers the marketing mix model controls for, so elasticity feeds directly into measuring incrementality. It also underpins discounting analysis: the same curve tells you the true CM1 cost of every promotion.

Price for margin, not for guesswork.

Connect your price and volume history and let the model find the contribution-maximising price for every line.

01

Connect your history

Price and volume, by product and segment.

02

Estimate elasticity

How demand responds, line by line.

03

Map the curve

Contribution margin at every price point.

04

Find the peak

The margin-maximising price and the headroom.

05

Decide

Raise, hold or discount, with the number behind it.

Book a demo ↗See the model