The background

A 226% surge in global shipping costs coupled with chip shortages globally had this laptop manufacturer adapt sales prices to account for the new cost situation. Before taking action, they wanted to assess the impact on sales of a possible price increase.

The action

The Senior Category Manager used gfknewron Predict to understand how price sensitive its consumers were and use price elasticities to scenario plan the impact of price adjustments on profits and units sold – before taking any changes to market.

The result

Deciding on a scenario that did not negatively impact units sold significantly allowed the manufacturer to increase total sales, protect its margins despite higher production costs and save opportunity costs around 1.2 million EUR.


million EUR

Scenario planning to maximize profits