👉 The collar math is a method of determining the optimal price range for a new product launch by analyzing the relationship between price and demand. It involves creating a curve that represents how changes in price affect the quantity demanded, typically using regression analysis to fit a mathematical model. The "collar" refers to the upper and lower price limits within which demand is expected to remain relatively stable. By identifying these price points, businesses can set a launch price that maximizes revenue and profit by capturing the most demand at those prices while minimizing losses from overpricing or underpricing. This approach helps in making data-driven decisions about pricing strategies, ensuring that the product's launch is both profitable and competitive in the market.
