Price It Right Without Guessing

A 1% price rise adds more to profit than 1% more sales or 1% lower costs, as long as customers keep buying.

Prices usually come from a competitor's page, a round number or a markup on cost. None of those tells you what the buyer would pay or how many sales a change can lose. The arithmetic that does is short: your margin decides how far sales can fall before a rise stops paying, and how far they must climb before a discount pays at all.

You work that out on your own figures, check your price against cost, competitors and the value the buyer gets, and shape tiers and price endings around how buyers judge your offer. Then you test a new price on real quotes against a break-even you write down first, raise it for existing customers in a set order, and keep discounts to the ones a buyer can explain. The method works in any currency, and the few legal points, such as how sale prices may be shown, are flagged for you to check locally.

Who it's for

Founders: set a price at launch and have not changed it since.

Consultants and service owners: quote by the hour or match the market and suspect they are undercharging.

Owners with tiers: want to know which tier should sell, and whether a rise or a discount will pay.