A Price Change should aim to manage value across the full commercial model:
Your brand
The retailer
The category
Key considerations:
What is changing? – cost price (COGS), retail price (RSP), or both
Margin impact – how the change affects retailer gross margin
Retailer response – whether a cost change will be passed through to shelf price
Volume impact – primarily driven by changes in RSP
Price elasticity – how sensitive demand is to price movement
Competitive positioning – how the new price compares in the market
COGS and RSP, individually or in combination, determine both margin outcomes and potential volume response.