HUGDRIGO / ELASTICITYLAB / OVERVIEW
ILLUSTRATIVE DATA
HG
◈ REVENUE STRATEGY / PROJECT 089

Find the price behind
better performance.

Explore demand elasticity, contribution margins and price recommendations in one transparent decision workspace.

Portfolio profit opportunity$0relative to current pricing

Commercial performance

Current vs. modeled recommended prices · monthly illustration

Gross profit by product

Compare profit contribution at current and recommended prices.

USD / MONTH
Current Optimized

Portfolio opportunities

Products with the largest modeled monthly uplift.

RANKED
About these estimates
Recommendations maximize a simple constant-elasticity gross profit model. Real customer responses may differ.

Recommended pricing

Model results for active products under your selected scenario

ANALYSIS / INTERACTIVE MODEL

Price laboratory

Inspect the entire price–demand–profit relationship for one product. Adjust business constraints and instantly recompute the strategy.

Selected product

Use your portfolio to switch between price curves.

LIVE MODEL

Pricing constraints

Changes update recommended prices across the portfolio.

EDITABLE

Price sensitivity

Model demand, revenue, and gross profit across allowable prices

Price response curve

Gross profit is optimized subject to your constraints.

PRICE → PROFIT
Gross profit Revenue Current price

Recommendation details

Transparent inputs and side-by-side modeled outputs.

USD / MONTH
CATALOG / PRICING INPUTS

Product portfolio

Add, edit, archive, and restore products. Model results update whenever an input changes. All data stays in your browser.

Active products

Prices, estimated units, elasticity and modeled profit

Archived products

Restore previous entries without losing their settings.

MODELING / STRESS TEST

Scenario planner

Stress-test pricing recommendations against shifting customer demand, higher supplier costs, and changing sales effectiveness.

Adjust the business environment

Slider changes apply across your active product portfolio

Scenario drivers

Percentage changes from illustrative baseline conditions.

CUSTOMIZABLE
Demand and channel adjustments scale estimated unit demand. Cost inflation adjusts variable unit cost. These are independent illustrative assumptions, not forecasts.

Estimated scenario outcome

At current prices versus constrained optimization.

PORTFOLIO TOTAL

Uncertainty explorer

600 seeded simulations around the selected scenario · illustrative ranges

Modeled monthly gross profit distribution

Deterministic random seed for reproducibility.

600 RUNS

Simulation percentiles

Illustrative 10th / median / 90th percentile outcomes.

SCENARIO RANGE
These intervals are generated from assumed volatility, not calibrated probabilities or investment advice.
REFERENCE / TRANSPARENCY

Methodology

Understand the assumptions behind the pricing, optimization, and uncertainty calculations.

1 · Constant-elasticity demand

For each product, modeled unit demand at a trial price is:

Q(p) = Q₀ × (p / p₀)^(-ε) × D × C

Here, Q₀ is baseline monthly demand, p₀ the current price, ε the assumed positive elasticity magnitude, D the market demand multiplier, and C the sales channel multiplier.

2 · Profit and revenue

Revenue = p × Q(p)

Gross profit = (p − variable unit cost) × Q(p)

Fixed expenses, tax, competitor actions, churn, and price discrimination are not included.

3 · Constraints and optimization

The algorithm scans 1,001 evenly spaced prices between the current price ± the allowed move, subject to a minimum gross margin threshold. It chooses the price yielding the greatest gross profit. When no price satisfies constraints, that product remains at its current price in portfolio totals and the exception is flagged.

4 · Scenario stress tests

Demand shock and channel lift multiply estimated demand. Cost inflation adjusts unit variable cost. Each product is optimized again under the altered conditions.

5 · Uncertainty simulation

600 reproducible pseudo-random draws perturb modeled unit demand and unit costs. The application displays the 10th, 50th, and 90th percentile of optimized portfolio gross profit. These distributions are illustrative.

6 · Data integrity and privacy

  • No external network requests, API keys, account connection, or tracking.
  • Changes are stored locally in browser storage where available.
  • JSON backups are validated before restoring.
  • CSV output protects against spreadsheet formula injection.
  • All initial products and results are fictional demonstration examples.

7 · Suitable uses and limits

This is a decision-support teaching tool, not a calibrated forecasting service. Validate elasticities, costs, competitors, operational constraints, and willingness-to-pay using empirical information before commercial use.

Workspace maintenance

Keep full control of local demonstration data

Reset replaces the local workspace only after confirmation. It does not change any Hugging Face repository or other projects.