Joshua Plunkett Analytics

Turning Data into Action

Pricing Analysis

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by

Josh Plunkett
in

Using Python, Excel’s Solver, and Regression Formulas

View Python Notebook
View Excel Models

Project Overview: Optimizing Product Pricing with Python and Excel Solver

In this project, I used Python and Excel’s Solver to find the best prices for nine different products to maximize revenue. By adjusting the prices strategically, I forecasted a 35% increase in annual revenue. This project showcases my ability to solve complex problems both accurately and creatively.

Key Components of the Project

  1. Exploratory Data Analysis (EDA) and Pre-processing in Python

    • EDA: This involves examining the data to understand its structure, patterns, and anomalies. It’s like getting to know your data before making any decisions.
    • Pre-processing: This step cleans and prepares the data for analysis. It includes tasks like handling missing values, normalizing data, and transforming variables to make them suitable for modeling.

  2. Modeling and Optimization Using Excel Solver

    • Modeling: Using the cleaned data, I performed calculations to understand the relationship between product prices and revenue. This step involves applying mathematical formulas to predict how changes in price affect revenue.
    • Optimization with Solver: Solver is a tool in Excel that helps find the best solution to a problem. In this case, it determined the optimal prices for each product to maximize total revenue. Solver uses the calculations from the modeling step to find the most profitable pricing strategy.

Documentation and Transparency

The Python notebook includes detailed documentation:

  • Mathematical Formulas: These are the equations used to model the relationship between price and revenue.
  • Excel Formulas: These are the specific formulas applied within Excel to perform the optimization.

Why Pricing Analysis Matters

Pricing analysis is crucial because it helps businesses determine the optimal price for their products or services, balancing profitability with customer demand. By understanding market trends, competitor pricing, and consumer behavior, companies can set prices that maximize revenue while remaining competitive.

Effective pricing analysis also aids in identifying potential areas for cost reduction and value enhancement, ensuring long-term sustainability. Ultimately, it enables businesses to make informed decisions that align with their financial goals and market positioning.