📖 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.
| Input | Base Case | Higher Pressure Case |
|---|---|---|
| Current Price ($) | 19 | 22.8 |
| Proposed Price ($) | 24 | 28.8 |
| Current Customers | 1,800 | 2,070 |
| 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 Price | Existing average unit price |
| Proposed Price | New price you are evaluating |
| Current Customers | Current 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 move | Customer move | Revenue 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.