{"id":187302,"date":"2025-04-16T04:15:38","date_gmt":"2025-04-16T04:15:38","guid":{"rendered":"https:\/\/peraltafinancing.com\/analytics\/we-start-by-initializing-the-base-case\/"},"modified":"2025-04-16T04:15:38","modified_gmt":"2025-04-16T04:15:38","slug":"we-start-by-initializing-the-base-case","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=187302","title":{"rendered":"We Start By Initializing The “Base Case”"},"content":{"rendered":"


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In my Pricing \/ Forecasting projects ($4,900 … kevinh@minethatdata.com), I start by initializing a “base case” … what would happen under normal conditions, same prices?<\/span><\/p>\n

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This business is at equilibrium …. the customer file is at a comparable size year-over-year, which means sales\/profit are comparably year-over-year. We now have our “base case”.<\/span><\/p>\n

Let’s say your cost of goods increase by 15% this year. Let’s say you keep prices the same, you eat the profit instead of the customer. Does the cost of goods increase eat up profit?<\/span><\/p>\n

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Look at that … you eat $4,000,000 in profit.<\/span><\/p>\n

You’re not going to eat $4,000,000 in profit, are you? You’ll past the cost along to the customer. Tomorrow, we’ll see if the customer is willing to eat up discretionary spend as a consequence.<\/span><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

In my Pricing \/ Forecasting projects ($4,900 … kevinh@minethatdata.com), I start by initializing a “base case” … what would happen under normal conditions, same prices? This business is at equilibrium …. the customer file is at a comparable size year-over-year, which means sales\/profit are comparably year-over-year. We now have our “base case”. Let’s say your […]<\/p>\n","protected":false},"author":1,"featured_media":187303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12033],"tags":[563,415,73498,5454],"dealstore":[],"offerexpiration":[],"class_list":["post-187302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analytics","tag-base","tag-case","tag-initializing","tag-start"],"yoast_head":"\nWe Start By Initializing The "Base Case" - 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=187302\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"We Start By Initializing The "Base Case" - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"In my Pricing \/ Forecasting projects ($4,900 … kevinh@minethatdata.com), I start by initializing a “base case” … what would happen under normal conditions, same prices? 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