{"id":141270,"date":"2025-03-18T08:30:55","date_gmt":"2025-03-18T08:30:55","guid":{"rendered":"https:\/\/peraltafinancing.com\/analytics\/kevin-hillstrom-minethatdata-an-offer-for-blog-readers-pricing-analysis\/"},"modified":"2025-03-18T08:30:55","modified_gmt":"2025-03-18T08:30:55","slug":"kevin-hillstrom-minethatdata-an-offer-for-blog-readers-pricing-analysis","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=141270","title":{"rendered":"Kevin Hillstrom: MineThatData: An Offer For Blog Readers: Pricing Analysis"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-body-238981264052858471\" itemprop=\"description articleBody\">\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">I&#8217;ve had several inquiries in the past two weeks about the impact of prices on customer behavior.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">Specifically, you are asking what happens to customer behavior if prices increase by 10% to 20%, through no fault of your own.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">We have a lot of data from 2021-2022 to guide us in this endeavor. Here&#8217;s the process I went through three years ago to address the issue.<\/span><\/p>\n<ol>\n<li style=\"text-align: justify;\"><span style=\"font-family: arial;\">Let&#8217;s say you have 15 merchandise categories. When you send me five years of purchase history, I have four years of year-over-year pricing comparisons times fifteen merchandise categories, for sixty (60) data points. That&#8217;s enough for me to do some damage.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: arial;\">I&#8217;ll compare year-over-year impact of prices (say, +10%) on rebuy rates (say, -5%), annual orders per buyer (maybe flat), annual items per order (say -2%) &#8230; which leads us to what I call demand per inventory (-7%). If prices increase by 10% and customer productivity decreases by 7%, you know that the top-line won&#8217;t be hurt, but you&#8217;ll have 5% fewer customers repurchasing, which means you&#8217;ll have a contracting business.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: arial;\">I&#8217;ll perform the same analyses on new\/reactivated buyers. Pricing issues typically hurt new\/reactivated customers more than they hurt existing buyers.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: arial;\">Given what I observe, I&#8217;ll forecast the next few years as a consequence. You&#8217;ll have a good\/directional idea whether price increases will hurt your business.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-family: arial;\">The core part of the analysis that informs the work I perform is in orange-ish cells below.<\/span><\/p>\n<div>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEh_cYdCDpgUODnB0fTbq5dHDYaqKI3MTFAX2HG6pp5sSoKo_Bzg0zkbpzpvBxQfQio6BOkDlNHlAsu3FpfZ4PqlEv4vle0C230xIDedwucwSKg-sPrNcVfjPpuTvVk_9Hi7VQgAdmR30bHMlkbbsXCAsftOgsYo-BtCrshBe-854hTZ-7ZKYXywaA\/s1280\/mtd_20250316.jpg\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" data-original-height=\"720\" data-original-width=\"1280\" height=\"225\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEh_cYdCDpgUODnB0fTbq5dHDYaqKI3MTFAX2HG6pp5sSoKo_Bzg0zkbpzpvBxQfQio6BOkDlNHlAsu3FpfZ4PqlEv4vle0C230xIDedwucwSKg-sPrNcVfjPpuTvVk_9Hi7VQgAdmR30bHMlkbbsXCAsftOgsYo-BtCrshBe-854hTZ-7ZKYXywaA\/w400-h225\/mtd_20250316.jpg\" width=\"400\"\/><\/a><\/div>\n<\/div>\n<p><span style=\"font-family: arial;\">Let&#8217;s try something &#8230; I&#8217;ll do this for $4,990 as a test, prepaid. This is likely going to be way too little to charge for something like this and I&#8217;m going to feel like I ripped myself off. It&#8217;s not a typical $15,000 pricing project, of course, but for nearly free you get to learn the likely impact pricing increases would have in your business, should they come to fruition.<\/span><\/p>\n<p><span style=\"font-family: arial;\">Contact me now (kevinh@minethatdata.com) &#8230; offer ends on Friday.<\/span><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;ve had several inquiries in the past two weeks about the impact of prices on customer behavior. Specifically, you are asking what happens to customer behavior if prices increase by 10% to 20%, through no fault of your own. We have a lot of data from 2021-2022 to guide us in this endeavor. Here&#8217;s the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":141271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12033],"tags":[10990,3767,13773,13772,13774,1621,14980,8351],"dealstore":[],"offerexpiration":[],"class_list":["post-141270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analytics","tag-analysis","tag-blog","tag-hillstrom","tag-kevin","tag-minethatdata","tag-offer","tag-pricing","tag-readers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Kevin Hillstrom: MineThatData: An Offer For Blog Readers: Pricing Analysis - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=141270\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kevin Hillstrom: MineThatData: An Offer For Blog Readers: Pricing Analysis - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"I&#8217;ve had several inquiries in the past two weeks about the impact of prices on customer behavior. 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