If you haven’t already, please read our article from last week about Revealed Preferences (RPs) and how they can affect your sales forecast and overall decision making. We’ll dig more into RPs this week to help you avoid the traps they present. An Overview of Revealed Preferences Sophisticated investors may not know the term revealed preferences, but most are familiar with the effects. RPs often catch many companies by surprise, forcing them to shut down when actual product d

In our last article, we discussed competition and different types of substitute products. This week we’ll cover Revealed Preferences (RPs), and how they show up in your business and in your life in general. What are Revealed Preferences? RP theory was developed around 1940 by economist Paul Samuelson to analyze choices made by people in their purchase decisions. We use a simplified definition to help size the market, determine actual customer behaviors, and to figure out whet