To purchase this app, go to iTunes
The optimum price calculator is and economist's approach to optimal pricing based on demand. This uses the formula MR = MC.
To maximise the effectiveness of the model, you will need to establish the relationship between price and demand. Once done, this can be input into the scenario spaces provided. For example, you may currently sell 1000 units at £220, but demand will drop to 950 units if your price increased to £240.
The model establishes the optimal point for both Price and Demand to maximise contribution.
The add in your variable cost per product and press calculate. This will give you both the optimum quantity and optimum price to sell at.
Please note that this app only gives an economists viewpoint to optimal pricing and all other factors need to be considered before any pricing decisions are made.