📖 Overview

Price strategy is a balance between value capture and volume retention.

This calculator compares current revenue versus a proposed price with customer response built in.

Use it to pressure test pricing before launch.

🧪 Example Scenarios

Use these default and higher-pressure example inputs to explore how sensitive this calculator is before using your real numbers.

InputBase CaseHigher Pressure Case
Current Price ($)1922.8
Proposed Price ($)2428.8
Current Customers1,8002,070
Expected Customer Change (%)-12-14.4

⚙️ How It Works

Compares current and projected top-line revenue after a price change and expected volume response.

The Formula

Projected Revenue = Proposed Price × Current Customers × (1 + Customer Change%)
Current PriceExisting average unit price
Proposed PriceNew price you are evaluating
Current CustomersCurrent paying customer volume
Customer Change%Expected volume increase or churn after price move
💡A higher price can still lower revenue if volume loss is too steep.

Quick Reference

Price moveCustomer moveRevenue impact
+$2-5%Often positive if baseline churn low
+$5-12%Needs careful elasticity testing
-$2+8%Can be positive at high conversion
+$10-25%Commonly negative unless premium segment strong

When To Use This

  • Use this tool when you need a fast decision during active planning or execution.
  • Use this before committing money, time, or tradeoffs that are hard to reverse.
  • Use this to compare options using the same assumptions across scenarios.

Edge Cases To Watch

  • Results can be misleading if key inputs are missing, stale, or unrealistic.
  • Very small or very large values may amplify rounding effects and interpretation risk.
  • If assumptions change mid-decision, recalculate before acting.

Practical Tips

💡 Use multiple customer-change scenarios to bracket risk.
💡 Watch absolute revenue delta, not just percentage change.
💡 Test margin impact separately before final pricing decisions.

Frequently Asked Questions

❓ Can customer change be negative?

Yes, use negative values for expected churn from higher prices.

❓ Does this model margin?

No, this is top-line revenue impact only.