Hello there,

I'm the author of the case and I will be happy to answer all your questions about it. In this specific step, you want to calculate the impact of the price decrease on 2019 revenues. Looking for that outcome, you can weight the delta prices with the revenues.

**Let's do an example,** supposing that a shop sells 2 products:

**Product A**, that costs 200 in 2018 and 150 *(-25%) in 2019*
**Product B**, that costs 200 in 2018 and 200 *(-0%) in 2019*

Now, the fastest way to understand the impact of the product A price reduction, is looking at the revenues split. Let's do two different assumptions for the revenues split:

- Product A is 100% of the 2019 revenues -->
**The impact is of 25%**
- Product A is 50% of the 2019 revenues -->
**The impact is of 50% * 25% = 12.5% **of total revenues

Does it make sense?

Feel free to write me if you want to discuss this further

Luca

Hello there,

I'm the author of the case and I will be happy to answer all your questions about it. In this specific step, you want to calculate the impact of the price decrease on 2019 revenues. Looking for that outcome, you can weight the delta prices with the revenues.

**Let's do an example,** supposing that a shop sells 2 products:

**Product A**, that costs 200 in 2018 and 150 *(-25%) in 2019*
**Product B**, that costs 200 in 2018 and 200 *(-0%) in 2019*

Now, the fastest way to understand the impact of the product A price reduction, is looking at the revenues split. Let's do two different assumptions for the revenues split:

- Product A is 100% of the 2019 revenues -->
**The impact is of 25%**
- Product A is 50% of the 2019 revenues -->
**The impact is of 50% * 25% = 12.5% **of total revenues

Does it make sense?

Feel free to write me if you want to discuss this further

Luca