Forecasting, Lost Profits & Commercial Damages

Econagency provides sales forecasting, lost profits, and commercial damages analysis for litigation, including product recall, business interruption, breach of contract, and intellectual property matters. Depending on the matter, engagements can include sales forecasts, lost profits and cost analysis, market analysis, and damages models under a variety of scenarios.

Mr. Buchanan was with Mary Kay Inc. for five years as an applied econometrician, where his responsibilities included managing the functions of forecasting, statistical modeling of compensation analysis, promotional events, pricing analysis, new product launches, business analysis, and data control. He has forecasted sales and calculated lost profits in matters involving product recalls, allegedly faulty parts, supply chain issues, and breach of contract.

Lost Profits and Business Interruption

• Analysis of lost profits from a large beef recall in the fast food industry.
• Analysis of sales, costs, and promotions to determine lost profits due to a product recall.
• Analysis of lost sales, profits, and units due to an alleged faulty part.
• Analysis of a supply chain system and lost sales.
• Breach of contract analysis, including lost profit analysis, and business interruption analysis.
• Analysis and quantification of destroyed product due to bio-engineered corn.

Sales Forecasting

• Forecasted sales and calculated lost profits for a company that had issues with the pumps that dispensed its product, including rebuttal of the opposing expert.
• Forecasted sales for a major restaurant chain that lost sales due to a massive food recall.
• Forecasted sales for a plastics manufacturer whose inventory software was not implemented properly.
• Forecasted sales for an importer of goods.
• Forecasted NBA player salaries for contract negotiations.

Intellectual Property Damages

Mr. Buchanan has analyzed damages in intellectual property matters, including trade secret misappropriation (lost profits and cost savings), patent infringement claims involving national manufacturers, copyright infringement claims involving the National Football League and the Baltimore Ravens, and trademark infringement claims involving a national hair product company. He co-authored “The Law of Demand and Lost Profits Analysis” in Economic Damages in IP Matters (Wiley, 2006) and “Econometric Analysis of Copyrights” in the Journal of Econometrics (2007).

This page describes the types of analysis Econagency offers, with examples drawn from Mr. Buchanan’s curriculum vitae. The analysis appropriate to any matter depends on its facts, the available data, and the questions at issue. Nothing on this page is an opinion about any particular case.