Bring the economics into one decision paper. Define the affected customers, estimate demand, calculate contribution, account for substitution and competitors, and check capacity and affordability. Then explain how the offer will be presented, measured and ended.
Apply the checklist to a competitor price cut, a price review after inflation and a retention offer. Each case uses illustrative assumptions. Replace them with your own data, and record which assumptions would change the recommendation.
Put it to work
Apply the ten-question checklist to one live proposal. Attach the contribution calculation, competitor scenario and measurement design. Record the launch decision, review date and conditions for stopping or changing the offer.
A question to try
What would we need to observe to decide this offer should stop?
