Reference glossary
RGM Concepts
A practitioner's reference to the core concepts of Revenue Growth Management in FMCG. Each page explains the formula, shows a worked example, and links to an interactive simulator where you can pull the levers yourself.
Pricing
Price Elasticity of Demand
Price elasticity of demand (ε) is the ratio of percent change in quantity demanded to percent change in price — negative for normal goods,…
Break-Even Sales Change (BESC)
The Break-Even Sales Change (BESC) is the volume loss a price increase can tolerate before gross profit turns negative — the go/no-go gate…
Price Thresholds
Price thresholds are psychological cliffs in the demand curve — round-number boundaries where local elasticity spikes 3–5× above the categ…
Van Westendorp Price Sensitivity Meter (PSM)
The Van Westendorp Price Sensitivity Meter is a four-question direct-survey method that delivers four named price points — PMC, OPP, IPP, …