Worked examples / Pricing

Raise prices

More per sale on paper. Here "how much it takes away" is the share of customers you expect to lose over it.

The gain holds, narrowly

The gain holds by $212,154, with 64.6% of it taken up by costs.

The gain, on paper$600,000over 3 years

What it costs$387,846counted over the same years

On paper it is worth $600,000 over 3 years.
What it costs comes to $387,846: every $1 of gain costs $0.65.

Put in your own numbers

This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.

How this answer was worked out

One-time cost	$0
Earnings lost because of it	$347,846
Side costs	$30,000
Cost of having to undo it, by its chance	$10,000
What it costs in all	$387,846
Cost per $1 of gain	$387,846 / $600,000 = $0.65
Result at the end	$212,154

Every formula is written out on the formulas page.

What the calculator asks you

The expected gain each year
The one-time cost of making the change
What the thing being changed was earning
How much of it is affected, and how much of that was truly spare
Which parts of the business rely on it
The chance of having to undo it

Open the calculator

How this answer was worked out

What the calculator asks you

Related