A tech startup asked FirstLink to help with the pricing strategy for its new medical device.
FirstLink examined the pricing strategy, price elasticity and comparative analysis of competitors’ prices. Upon examining competitors’ prices, a price elasticity model was built.
This model showed that pricing the device 37.5% higher than competitors’ average price may result in an 11.6% decrease in quantity demanded, and pricing it 33% lower may result in a 9.92% increase in quantity demanded. This data is helping the company drive its pricing strategy.