bed1
bed_bath_table Cut Price -15%Cut price by 15.0% from $39.99 to $33.99 to capture price-sensitive shoppers—projected volume rises +123.5% for +$251.84/mo in net revenue.
Current Price
$39.99
Lowest competitor: $39.99
Recommended Price
$33.99
-15.0% within ±15% guardrail
Estimated Demand Change
7.0 → 15.6 units/mo
+123.5% projected volume
Expected Revenue Impact
+$251.84 / mo
+90.0% monthly lift
±15% Risk-Bounded Price Simulator
Test unit prices inside the ±15% churn-protection boundary
$33.99
-15.0%
-15% ($33.99)
Current ($39.99)
+15% ($45.99)
Current Monthly Revenue
$279.93 / mo
Simulated Monthly Revenue
$531.77 / mo
+90.0%
Simulated Monthly Demand:
15.6 units/mo (+123.5%)
95% Bootstrap Confidence Range
Plain-English Risk Gauge · 1,000 SKU Bootstrap Resamples
Conservative (2.5%)
+$104.68
Expected Gain
+$251.84
Upside (97.5%)
+$476.73
$0 Break-Even
Expected: +$251.84
-$120/mo
95% Confidence Interval
+$560/mo
In 998 out of 1,000 bootstrap resamples, cutting bed1 to $33.99 increases monthly revenue—with 95% of outcomes landing between +$104.68/mo and +$476.73/mo.
R Statistical Engine & Portfolio Benchmark
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Elasticity b = -4.9483 (p = 0.0003, R² = 0.625, n = 16 mos) · Dataset Elastic Group (n = 28 SKUs): Median Lift +$631.14/mo (p < 0.0001)
Per-SKU Log-Log Regression (Untitled_2.Rmd)
n = 16 months
lm(log(qty) ~ log(unit_price) + log(best_price))
Elasticity (b_raw)
-4.9483
t-statistic
-4.83
p-value
0.0003
Model R²
0.625
Dataset-Level Bootstrap Validation
Elastic Group (n = 28 SKUs, 10,000 bootstrap runs): Median Revenue Lift +$631.14/mo · 95% CI [$289.32, $2,298.48] · p < 0.0001
Pricing rule: Elastic SKUs (b < -1) receive a 15% price cut to expand volume; Inelastic SKUs (b ≥ -1) receive a 15% price lift to expand unit margin.