Title: Dr. Anya Sharma Navigates Botox Price Wars: Preserving Profits & Patient Loyalty Tagline: Strategic Pricing in a Competitive Market Problem: Dr. Sharma's practice experienced a decline in Botox revenue due to new medspas offering discounted rates. She worried that lowering her prices would erode profit margins, while maintaining existing prices could lead to further client attrition. Her significant student loan debt of $280,000 added pressure to maintain a healthy income, making a misstep in pricing strategy particularly risky. Anya needed to understand how sensitive her patients were to price changes compared to competitors. Solution: Using the Cross Price Elasticity Calculator, Dr. Sharma analyzed the potential impact of different pricing scenarios. By inputting her current Botox price, competitor prices, and historical sales data, she determined the cross-price elasticity of demand was 0.75. This indicated a moderately elastic response: For every 1% drop in a competitor’s price, her Botox sales would decrease by 0.75%. Based on this, she implemented a targeted pricing strategy, offering a 5% discount on Botox for existing patients only, preserving margins on new patients while retaining loyal customers. She also leveraged the Times Interest Earned Ratio Calculator to ensure her business could service its debt at different revenue levels. She also factored in inflation using the Real Exchange Rate Calculator to further refine her pricing model. ROI: $18,000 in increased Botox revenue over the following year due to strategic pricing and patient retention. Description: This case study examines how Dr. Anya Sharma, owner of a small medical practice, utilized the Cross Price Elasticity Calculator to strategically adjust her Botox pricing in response to competitive pressures, ensuring profitability while maintaining patient volume. Facing rising costs and increased competition, Anya needed a data-driven approach to avoid a price war that could jeopardize her practice's financial health. Category: Client Service Calculators: Cross Price Elasticity Calculator, Times Interest Earned Ratio Calculator, Real Exchange Rate Calculator