Competitive Channel Pricing

Master Your Channel Economics

Analyze how channel structure and competition affect your pricing, profits, and market outcomes. Compare direct sales vs. retail channels across four strategic scenarios.

Optimal Prices Direct vs. Wholesale

Profit Split Producer vs. Retailer

Elasticity Own & Cross-Price

Scenario Compare 4 business models

Linear Demand System with Cross-Price Effects

Q₁ = a₁ - b₁ * P₁ + c₁ * P₂

Q₂ = a₂ - b₂ * P₂ + c₂ * P₁

Supports substitutes (c > 0) and complements (c < 0)

⚙ Four Business Scenarios

1. Single Owner, Direct One firm owns both products, sells direct to consumers. Benchmark for coordination.

2. Single Owner + Retailer One firm owns both, sells through retailer. Shows double marginalization effect.

3. Competitors, Direct Two firms compete directly. Price competition for substitutes, coordination failure for complements.

4. Competitors + Retailer Two firms sell through common retailer. Combined competition + channel effects.

Channel choice can shift 15-40% of profits

See exactly where your money goes

📦 What You Get

Web-Based Tool User Manual Sample Datasets Demand Predictor Elasticity Calculator Profit Comparison Charts

🏢 Use Cases

CPG / FMCG Consumer Electronics Software / SaaS Retail Strategy MBA Education

💡 Key Insights

Quantify double marginalization losses
Compare ownership structures
Understand substitute vs. complement dynamics
Optimize wholesale vs. retail pricing

Ready to Optimize Your Channel Strategy?

Dr. Koray Cosguner

Founder & Principal Consultant
Associate Professor of Marketing

miaow.consulting@gmail.com

Kelley School of Business

#1 Online MBA | #4 UG Marketing (U.S. News)

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